Stockholm-based medical device maker Elekta (STO:EKTA B) has got its eyes on the radiation oncology market in Turkey, hoping to build a base there with the acquisition of Mesi Medikal.
Mesi is major Turkish distributor of radiotherapy products, representing companies such as Philips Medical Systems (NYSE:PHG), Bionix and others, according to the company’s website. Elekta hopes the acquisition will significantly deepen its footprint it Turkey, which the company described as "a country with a shortage of radiotherapy devices and software and a growing incidence of cancer."
"With only about two linear accelerators per million people in Turkey, we see strong growth opportunities," Elekta president & CEO Niklas Savander said in prepared remarks. "Elekta projects that almost 380 linear accelerators will be required by 2023, compared to today’s 210 units. The best way to capture this growth is to develop the relationship we have had with Mesi Medikal since 1997."
The companies did not reveal the terms of the deal, but Elekta said that the acquisition will add about 0.3% to its annual revenues and that it will be accretive to its per-share earnings. Elekta also said that there is a 3-year earn-out component to the transaction, but did not provide details.
