Accuray to buy TomoTherapy for $277M
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The combined company will offer technologies for the treatment of cancer and other diseases, ranging from radiosurgery for early-stage and localized disease to image-guided intensity-modulated radiation therapy for more advanced disease sites, according to the Sunnyvale, Calif.-based Accuray. The combined company will have an installed base of more than 550 units in 32 countries, and more than 1,100 employees.
“The combined company will also have greater scale to invest in research and development,” said Euan S. Thomson, PhD, president and CEO of Accuray.
The transaction, which has been approved by the boards of directors of both companies, is expected to close in the second quarter or the beginning of the third quarter of calendar 2011, subject to customary closing conditions, TomoTherapy shareholder approval and regulatory approvals, according to the companies. The acquisition is expected to be accretive to Accuray earnings per share in its fiscal year beginning July 1, 2012.
Accuray said it recognizes that Madison, Wis. is TomoTherapy’s operating and corporate headquarters, and it is committed to maintaining a strong presence in the area.
UBS Investment Bank served as Accuray’s financial advisor on the transaction, and Gibson, Dunn & Crutcher served as its legal counsel. BofA Merrill Lynch served as financial advisor to TomoTherapy. Sidley Austin served as TomoTherapy’s legal counsel.