Elekta to Acquire Brachytherapy Technology Company Nucletron

The acquisition is expected to be accretive to Elekta’s cash earnings within 12 months. The transaction remains subject to regulatory approval but is expected to close in early autumn 2011.

Through this compelling combination, Elekta will offer a complete range of radiotherapy planning and delivery technologies, enhancing its combined ability to meet the clinical needs of cancer patients and healthcare providers throughout the world.

Nucletron is the global market leader in brachytherapy with 2010 reported revenues of EUR 128 million and EBITDA (earnings before interest, taxes, depreciation, and amortization) of EUR 26 million.

Nucletron will add 1,000 new customers to Elekta’s customer base of more than 5,000. The two companies have highly synergistic product and technology portfolios. The combination will lead to enhanced solutions for customers and patients, and will allow the enlarged group to take mutual advantage of Nucletron’s expertise in brachytherapy combined with Elekta’s global presence, particularly in emerging markets.

Under the terms of the agreement, Elekta will pay cash consideration of EUR 365 million to acquire Nucletron on a cash and debt-free basis. The transaction, which has been approved by the Board of Directors of both companies, is subject to regulatory approval and is expected to close in early autumn 2011.

The acquisition is expected to be accretive to Elekta’s cash earnings within 12 months. The transaction will be financed through existing cash on hand and available credit facilities. The proforma business will continue to have a strong financial profile.

“Elekta and Nucletron have a long history of collaboration. Nucletron has a very talented team and the company has created a truly market leading business. The combination creates an excellent opportunity for our patients, customers, employees, and shareholders,” said Elekta president and CEO Tomas Puusepp. “The combination with Nucletron enhances Elekta’s product portfolio, offers significant opportunities, and extends our geographic reach and distribution capacity. This integrated product portfolio is particularly important, as the combination of brachytherapy and external beam radiation therapy treatments continues to emerge as a leading course of therapy for cancer worldwide,” he added.

“By joining forces with Elekta, Nucletron becomes part of a world-leading provider of therapy for many types of cancers. I believe the combination represents a unique opportunity to realize Nucletron’s true potential, gain critical mass, and continue to invest in the development of brachytherapy. We look forward to working with our new colleagues,” said Nucletron CEO Jos Lamers.

Elekta is a human care company pioneering innovations and clinical solutions for treating cancer and brain disorders. The company develops advanced tools and treatment planning systems for radiation therapy and radiosurgery, as well as workflow enhancing software systems across the spectrum of cancer care. Today, Elekta solutions in oncology and neurosurgery are used in over 5,000 hospitals globally, and every day more than 100,000 patients receive diagnosis, treatment, or follow-up with the help of a solution from the Elekta Group.

Nucletron provides state of the art radiotherapy solutions for cancer treatment that meets the evolving needs of patients, their caregivers, and healthcare professionals around the world. Nucletron has a global leadership in brachytherapy, a very precise, highly effective, and well-tolerated treatment option for healthcare providers, customized to the needs of individual patients. The company works with clinical teams to constantly improve and develop a range of integrated products, software, and services that assures excellent patient outcomes. Nucletron employs more than 500 employees, with offices in 18 countries, and products available in more than 100 countries around the world.

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