TomoTherapy Incorporated (NASDAQ: TOMO) shares spiked nearly 25% after the company today announced its acquisition by Accuray for $4.80 per share in cash and stock, or a total of about $277 million. The combined entity is expected to create the premier radiation oncology company. As per the terms of the definitive agreement, each TomoTherapy shareholder will receive $3.15 in cash and 0.1648 shares of Accuray common stock. The deal is expected to close in the second quarter or the beginning of the third quarter of calendar 2011. The company noted that all of its executive officers and directors entered into deal to vote their shares in favor of the merger, which collectively represented approximately 11% of the company’s common stock as of February 28. The company also agreed to pay a termination fee of $8 million upon a termination of the deal under certain circumstances.
The combined entity will have an installed base of more than 550 units in 32 countries, and more than 1,100 employees. The combined revenue of the two companies in calendar year 2010 exceeded $400 million, of which 30% was from service of the installed base.
The company recently reported its fourth quarter results with net loss of $(6.39 million) or $(0.12) per share as compared to net loss of $(3.37 million) or $(0.07) per share last year. The total revenues for the quarter rose to $62.07 million from $57.95 million in the prior year. The revenue from product sales was $48.1 million, up 8% as compared to the same quarter last year, and revenue from service and other was $13.9 million, up 5% as compared to the same quarter last year.
Accuray has been profitable in three of its last four quarters; on the flip-side,� TomoTherapy is braced to lose $0.30 to $0.50� per share in 2011. Accuray said it expects the deal to add to its profit starting in the fiscal year beginning July 1, 2012.
The company expects loss per share to be in the range of $0.30 to $0.50 for fiscal year 2011. The full-year revenues are expected to be in the range of $215 million to $235 million.
TomoTherapy stock is currently trading at $4.60. The stock is up 25.34% from its previous close. TomoTherapy shares touched the high of $4.70 and lowest price in today�s session is $4.59.
The company stock traded in the range of $2.59 and $4.70 during the past 52 weeks. The company�s market cap is $258.71 million.
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