Stockholm, Sweden, January 08, 2008
Acquisition of leading treatment planning software developer would strengthen Elekta’s offering and accelerate the company’s expansion into high growth oncology informatics
Elekta AB (publ) (STO:EKTAb) a world leader in clinical solutions for radiation therapy and radiosurgery, today announced that it is in exclusive negotiations based on a Letter of Intent to acquire CMS Inc. for a total cash consideration representing an enterprise value of USD 75 M. 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. The transaction is subject to successful conclusion of final transaction documentation, satisfactory completion of due diligence, receipt of relevant regulatory approvals and other conditions. The negotiations are expected to be finalized by mid February 2008 and closing is estimated to take place by mid March 2008.
New trends in radiation therapy planning
“The radiation therapy discipline continues to advance and radiation therapy planning, along with treatment delivery and management technology, enables clinicians to develop and deliver regimens that hopefully will result in improved treatment outcomes”, explains James P. Hoey, EVP Product Creation at Elekta and CEO of IMPAC Medical Systems, an Elekta company. “Elekta recognizes that treatment planning is rapidly evolving from an event that typically occurred in an isolated area one or two times during the therapy process to becoming a more iterative process that evolves throughout the course of therapy with various steps taking place in different areas of the department. Our aggressive development of MOSAIQ™ RTP as the world’s first distributed toolset for advanced radiation therapy is targeted to meet this growing demand. CMS, with several leading solutions already in clinical use, and a strong pipeline of advanced functionality in development, could significantly contribute to our MOSAIQ RTP strategy going forward. CMS’s large, highly competent product creation and support organizations would enable us to accelerate our development and bring these solutions to our customers more quickly and effectively.”
Financial effects of the transaction
CMS is based in St Louis, Missouri and is owned by a private equity fund, managed by the US investment bank Brown Brothers Harriman. The company has 290 employees worldwide. In fiscal year 2007 (ending September), the company grew its order intake by 21 percent to USD 61 M.
For further information, please contact:
Peter Ejemyr, Group VP Corporate Communications, Elekta AB
CMS is a worldwide leader in the development and support of radiation treatment planning and workflow management solutions. With treatment planning systems installed in more than 1,500 sites worldwide, CMS is a global resource to the radiation oncology community. A privately held corporation, CMS employs 290 professionals in its headquarters located in St. Louis, MO and regional offices in Tampa, Florida; Freiburg, Germany; Tokyo, Japan; Sydney, Australia; and Shanghai, China. More information about CMS can be found at www.cmsrtp.com .
Elekta is an international medical technology group, providing oncologists, radiation therapists, neurosurgeons and many other medical specialists with state of the art tools to fight serious disease.
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties as well as other uncontrollable or unknown factors could cause actual results to materially differ from the results, performance or expectations expressed or implied by such forward-looking statements.
|Acquisition of leading treatment planning software developer would strengthen Elekta’s offering and accelerate the company’s expansion into high growth oncology informatics Acquisition of leading treatment planning software developer would strengthen Elekta’s offering and accelerate the company’s expansion into high growth oncology informatics|