Press Release Stockholm, Sweden, February 18, 2008 Elekta AB (publ) (STO:EKTAb) a world leader in clinical solutions for radiation therapy and radiosurgery, today announced that it has signed a purchase agreement to acquire CMS Inc. for a total cash consideration representing an enterprise value of USD 75 M. Closing of the transaction is expected in March.
CMS is a worldwide leader in the development, sales and support of advanced radiation therapy planning solutions, supporting over 1,500 sites in clinical operation throughout the world.
“I am very pleased that the process to acquire CMS is proceeding according to plan” commented Tomas Puusepp, President & CEO of Elekta. “The people, products and market position of CMS are highly complementary to Elekta’s corporate structure, technology portfolio and R&D roadmap. Both Elekta’s and CMS customers will benefit from our combined strength in product development and support.”
CMS, with several leading solutions in clinical use and a strong pipeline of advanced functionality in development, will significantly contribute to Elekta’s strategy in radiation therapy planning. CMS’s large, highly competent sales, marketing, product creation and support organizations will enable Elekta to accelerate the development of new solutions and bring these to market more quickly and effectively.
CMS is also the market leader in treatment planning for proton therapy with eight installations in clinical use. Integrating these solutions with the MOSAIQ™ information management system will reinforce Elekta’s leadership in software systems for proton therapy facilities and strengthen the collaboration between Elekta and its current partners in this area.
Updated projections of the financial effects of the transaction
CMS is based in St Louis, Missouri and is owned primarily by a private equity fund, managed by the US investment bank Brown Brothers Harriman. The company has 300 employees worldwide. In fiscal year 2007 (ending September), the company grew its order intake by 21 percent to USD 61 M.
Based on a preliminary purchase price allocation together with a conservative estimation of revenue synergies, Elekta’s management expect the acquisition to result in:
• Accretion to earnings on a cash basis in fiscal year 2008/09 and onwards
• Neutral effect on EPS in fiscal year 2008/09 and accretion thereafter
• Accelerated revenue growth, but with modest group effect given the size of the acquired business
• Preserved balance sheet strength and financial flexibility