The Sunnyvale, Calif.-based radiosurgery company signed an agreement to buy TomoTherapy for $4.80 per share in cash and stock, a nearly 31 percent premium over its $3.67 closing price on Friday, March 4.
The companies believe their technologies complement one another in that they can serve overlapping patient populations.
TomoTherapy’s "ring gantry-based" cancer treatment platform is designed to reduce radiation exposure to surrounding tissue surrounding cancerous cells. The system uses CT imaging to guide conformal radiation therapy treatments.
"This transformational transaction significantly increases our global market presence, creates financial benefits from operating efficiencies and overhead reductions, and creates exciting new revenue opportunities for us. The combined company will also have greater scale to invest in the R&D that will keep it on the leading edge of innovation, offering new hope for cancer patients worldwide," Accuray CEO Euan Thomson said in prepared remarks.
Accuray’s robotic radiosurgery CyberKnife system, which last December won 510(k) clearance from the Food & Drug Administration for a wider indication of lung cancer treatment, is designed to non-invasively treat tumors anywhere in the body. In January, the company reported positive results for a study on the device’s ability to treat prostate cancer.
Post acquisition Accuray will have an installed base of more than 550 units in 32 countries, and more than 1,100 employees, according to the companies. The combined revenue of the two companies in calendar year 2010 exceeded $400 million, 30 percent of which was generated from service of the installed base, the companies reported.
Accuray does not expect the acquisition to be accretive to its earnings until its fiscal year 2013.
The news of the acquisition sent Accuray’s stock down about 10.5 percent. At last check, the ARAY shares had fallen from $10.01 to $8.95 a piece. TOMO shares lept nearly 25 percent to $4.57 after opening at $3.67.
Here’s a roundup of companies announcing mergers, acquisitions and divestitures.
- Terumo in $2.6 billion CaridianBCT takeover deal
Lakewood, Colo.-based Gambro AB, jointly controlled by Investor AB (SS:INVEA) (49 percent) and EQT IV (51 percent), signed an agreement to sell its unit CaridianBCT to Terumo Corp. (TYO:4543) for a total enterprise value of $2.63 billion. The value corresponds to a multiple of approximately 15x 2010 EBITDA. During EQT IV’s and Investor’s ownership, annual sales growth of CaridianBCT has been more than 10 percent and EBITDA has almost doubled. R&D investments have been significant and the company has continued to strengthen its position in the important growth areas of pathogen reduction and whole blood processing. The roll-out of several new products like the Spectra Optia Apheresis System and the Quantum Cell Expansion System during the past years will be important future growth drivers. The company is today more efficiently managed and the combination with Terumo is industrially very strong and complementary both with regard to products and geography. Terumo is Japan’s largest medical device maker. Its biggest competitor in the blood transfusion equipment sector is Braintree, Mass.-based Haemonetics Corp. (NYSE:HAE).
- Amgen closes acquisition of BioVex
Thousand Oaks, Calif.-based Amgen Inc. (NSDQ:AMGN), completed of the acquisition of BioVex Group Inc., a privately held biotechnology company based in Woburn, Mass., with additional operations in Abingdon, UK. The acquisition includes OncoVEX(GM-CSF), a novel investigational oncolytic vaccine in Phase 3 clinical development that may represent a new approach to treating melanoma and head and neck cancer. The acquisition was initially announced on Jan. 24.
- Instem buys healthcare intelligence firm BioWisdom
Conshohocken, Pa.-based Instem bought out up BioWisdom Ltd. The Cambridge, UK-based company provides solutions to accelerate access to scientific information for better decision support during product discovery, development and commercialization. It provides a suite of software tools for the acquisition, integration, visualization and high-value analysis of healthcare intelligence from an extensive collection of public and private sources. BioWisdom seeks to allow researchers at companies like AstraZeneca, Johnson & Johnson, Merck and Abbott to gather information about their targets during program development, find patterns in their research data, and put their own results into a broader scientific context to predict likely outcomes.
- USA Mobility acquires Amcom Software
Springfild, Va.-based USA Mobility Inc. (NSDQ:USMO), a provider of wireless messaging and communications services, today announced the acquisition of Amcom Software Inc. for $163.3 million in cash, creating a company in the forefront of mission critical unified communications. The acquisition was funded by $110.8 million of cash on hand and $52.5 million through a credit facility provided by Wells Fargo Capital Finance LLC.