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Elekta Negotiates To Acquire CMS

Wednesday, January 9, 2008 General News
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STOCKHOLM, Sweden, Jan. 8 Elekta AB (publ)(STO: EKTAb) a world leader in clinical solutions for radiation therapy andradiosurgery, today announced that it is in exclusive negotiations based on aLetter of Intent to acquire CMS Inc. for a total cash considerationrepresenting an enterprise value of USD 75 M. CMS is a worldwide leader in thedevelopment, sales and support of advanced radiation therapy planningsolutions, supporting over 1,500 sites in clinical operation throughout theworld. The transaction is subject to successful conclusion of finaltransaction documentation, satisfactory completion of due diligence, receiptof relevant regulatory approvals and other conditions. The negotiations areexpected to be finalized by mid February 2008 and closing is estimated to takeplace by mid March 2008.
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CMS has been a pioneer in the development and delivery of radiationtreatment planning (RTP) systems for over 25 years and continues to be aleader in treatment planning and oncology workflow management. Successfulcompletion of the acquisition process would benefit Elekta by adding a suiteof advanced RTP systems, a large and growing installed base, and a well-established RTP operational infrastructure to Elekta's current oncologybusiness. CMS's worldwide sales and support infrastructure and large,experienced engineering organization have the potential to accelerate Elekta'sability to develop, implement, and support new, sophisticated radiationplanning, delivery, and management solutions worldwide.
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CMS is also the market leader in treatment planning for proton therapywith 8 installations in clinical use. Integrating these solutions with theMOSAIQ(TM) information management system would reinforce Elekta's leadershipin software systems for proton therapy facilities and strengthen thecollaboration between Elekta and its current partners in this area.

"The products and market position of CMS are highly complementary toElekta's corporate structure, technology portfolio, and R&D roadmap. BothElekta's and CMS customers will benefit from our combined strength in productdevelopment and support. With CMS in the Elekta Group, we will also gainrelationships with a large number of customers who do not use Elekta'sproducts today," explains Tomas Puusepp, President & CEO of Elekta. "Elektaand CMS share a common belief in open systems, and a vision that radiationtreatment planning is a critical piece of the technology required for emergingradiation therapy treatment capabilities such as VMAT and adaptive therapy.Together, CMS and Elekta can offer and further develop solutions that optimizeclinical workflow while also providing well-defined interfaces that allowclinicians to choose systems that best fit their specific needs."

New trends in radiation therapy planning

"The radiation therapy discipline continues to advance and radiationtherapy planning, along with treatment delivery and management technology,enables clinicians to develop and deliver regimens that hopefully will resultin improved treatment outcomes," explains James P. Hoey, EVP Product Creationat Elekta and CEO of IMPAC Medical Systems, an Elekta company. "Elektarecognizes that treatment planning is rapidly evolving from an event thattypically occurred in an isolated area one or two times during the therapyprocess to becoming a more iterative process that evolves throughout thecourse of therapy with various steps taking place in different areas of thedepartment. Our aggressive development of MOSAIQ(TM) RTP as the world's firstdistributed toolset for advanced radiation therapy is targeted to meet thisgrowing demand. CMS, with several leading solutions already in clinical use,and a strong pipeline of advanced functionality in development, couldsignificantly contribute to our MOSAIQ RTP strategy going forward. CMS'slarge, highly competent product creation and support organizations wouldenable us to
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