New numbers released about the impending deal show that Accuray, a Sunnyvale, Calif.-based radiosurgery device maker, is significantly smaller than its new acquisition company with 200 fewer employees than TomoTherapy’s 636. Accuray’s 2010 revenues were about 6 percent higher than TomoTherapy, at $206 million compared to $195 million. And Accuray’s finances are in much better shape. The company was profitable in 2010, posting just under $7 million in net income, compared to a $30 million net loss for TomoTherapy.
The new information, courtesy of a recent investors presentation, show that Accuray will gain a significantly larger customer base as a result of the merger — TomoTherapy has an installed base of 350 total systems at medical centers across the globe. Accuray will also gain access to more than 130 issued patents under TomoTherapy’s control.
Accuray forecasts that the deal, expected to close by the third quarter of 2011, will be accretive to earnings by July 2012. Company officials previously said they thought the deal would start to pay off in 2013.
Accuray inked 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.
At the time the companies said they 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.
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.
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