Healthcare Industry News: Elekta
News Release - March 4, 2008
Elekta Completes the Acquisition of CMSSTOCKHOLM, Sweden--(HSMN NewsFeed)--The international medical technology group Elekta AB (publ) (STO:EKTAB) today announced the completion of its announced acquisition of CMS, Inc. for 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.
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 and management of images and information. CMS’s large, highly competent sales, marketing, product creation and support organizations will provide added resources and expertise to enable Elekta to accelerate the development of new cancer treatment solutions and bring these tools to market more quickly and effectively.
From a financial reporting perspective CMS will be consolidated into Elekta’s accounts as of March 4, 2008.
As previously communicated, 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
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.
Elekta provides advanced clinical solutions, comprehensive management and information systems as well as services for improved cancer care and management of brain disorders.
Elekta’s systems and solutions are used in over 4,500 hospitals around the world. Clinical and information management solutions include, among others, Leksell Gamma Knife® for non-invasive treatment of brain disorders, Elekta Axesse™ and Elekta Synergy® for stereotactic and image guided radiation therapy and radiosurgery as well as the MOSAIQ™ suite of software for image-enabled EMR and efficient management of clinical and patient data.
With over 2,000 employees globally, the corporate headquarter is located in Stockholm, Sweden and the company is listed on the Nordic Exchange under the ticker EKTAb. More information about Elekta can be found at www.Elekta.com.
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