SUNNYVALE, Calif., June 13, 2011 /PRNewswire/ -- Accuray
Incorporated (Nasdaq: ARAY) announced today that it has completed
its previously announced acquisition of TomoTherapy Incorporated
(Nasdaq: TOMO). The combination creates the premier radiation
oncology company, offering best-in-class technologies to fight
cancer. The combined company is focused on developing,
manufacturing and selling personalized, leading-edge treatment
solutions that revolve around the patient.
"The successful closing of this transaction is a significant
accomplishment and an important milestone in Accuray's history.
Scale is important in the capital equipment industry, and today
Accuray's installed base more than doubles, generating greater
opportunity for service revenue and for replacement business over
time to customers who have purchased these best-in-class
technologies," said Euan S. Thomson,
Ph.D., president and chief executive officer of Accuray. "We
appreciate the support of our investors and the contributions of
our stakeholders who helped us achieve this important transaction.
We look forward to working toward achieving our goals as a
stronger, unified company."
Accuray now offers radiation treatments tailored to the specific
needs of each patient, ranging from high-precision radiosurgery for
early-stage and localized disease to image-guided,
intensity-modulated radiation therapy for more advanced disease
sites throughout the body. These complementary patient populations
are treated by the same medical specialty, creating a broader base
of sales relationships for the company to leverage. By bringing
together the expertise and complementary resources of both
companies, Accuray becomes a stronger organization with greater
scale to invest in the R&D that will keep it on the leading
edge of innovation.
"This acquisition places Accuray in two market segments with
good growth prospects and enhances our opportunity to grow
shareholder value," said Derek
Bertocci, senior vice president, chief financial officer of
Accuray. "We expect our new scale will help make revenue more
predictable, and assist in making the TomoTherapy service business
more efficient and ultimately profitable. Over the next 12 months
we plan to make changes with the goal of achieving combined
operating expense savings of $25
million in fiscal year 2013, with the majority of savings
from corporate overhead and marketing."
With the closing of the transaction, Accuray's installed base
increases from 226 to more than 550 Systems, installed in 32
countries. Accuray's total number of employees doubles to more than
1,000 worldwide. Corporate headquarters will remain in Sunnyvale, California, but the company will
maintain a significant presence in Madison, Wisconsin, where TomoTherapy's
headquarters were located. Euan
Thomson will continue to serve as president and chief
executive officer of Accuray.
With the closing of the transaction, TomoTherapy common stock
will cease trading on NASDAQ before market open on June 13, 2011, and will no longer be listed on
NASDAQ.
UBS Investment Bank served as Accuray's financial advisor on the
transaction, and Gibson, Dunn & Crutcher LLP served as its
legal counsel. BofA Merrill Lynch served as financial advisor
to TomoTherapy. Sidley Austin LLP served as TomoTherapy's legal
counsel.
About Accuray
Accuray Incorporated (Nasdaq: ARAY), based in Sunnyvale, Calif., is the premier radiation
oncology company. Accuray develops, manufactures and sells
personalized, best-in-class treatment solutions that revolve around
the patient. Accuray's game-changing technologies – the CyberKnife
System and TomoTherapy Systems – set the standard of care with the
aim of helping patients live longer, better lives. To date, more
than 200,000 patients worldwide have been treated using the
company's technologies and more than 550 systems have been
installed in leading hospitals around the world. For more
information, please visit www.accuray.com or
www.accuraytomotherapy.com.
Safe Harbor Statement
The foregoing may contain certain forward-looking statements
that involve risks and uncertainties, including uncertainties
associated with the medical device industry and the transaction
between Accuray and TomoTherapy. Except for the historical
information contained herein, the matters set forth in this press
release, including the impact of the acquisition of TomoTherapy by
Accuray, are forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements speak only as
of the date the statements are made and are based on information
available at the time those statements are made and/or managements'
good faith belief as of that time with respect to future
events. You should not put undue reliance on any
forward-looking statements. Important factors that could
cause actual performance and results to differ materially from the
forward-looking statements we make include: market
conditions; the effect of the announcement of the closing of the
transaction on Accuray's business; the risk that Accuray will not
realize the anticipated benefits of the transaction; the potential
inability to successfully operate or integrate the TomoTherapy
business; general industry and economic conditions; and other
factors beyond the company's control and the risk factors and other
cautionary statements described in Accuray's and TomoTherapy's
filings with the SEC. Please refer to the Risk Factors
section of Accuray's Quarterly Report on Form 10-Q for the
fiscal quarter ended March 31, 2011, the Risk Factors set
forth in TomoTherapy's Annual Report on Form 10-K for the
fiscal year ended December 31, 2010, as amended, and as
updated in TomoTherapy's Form 10-Q for the fiscal quarter ended
March 31, 2011, and the Risk Factors
set forth in Accuray's Registration Statement on Form S-4, filed
with the SEC on April 7, 2011 and as
amended on May 5, 2011 and
May 9, 2011, for a further list and description of additional
business risks, uncertainties, and other factors that may affect
these statements. Accuray does not intend to update these
statements and undertakes no duty to any person to provide any such
update under any circumstance.
Available Topic Expert(s): For information on the listed
expert(s), click appropriate link.
Euan Thomson, Ph.D.
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=81869
SOURCE Accuray Incorporated