Deal Timeline

Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.

$277M
Jun 2011
TomoTherapy Incorporated

The Acquisition Playbook.

Three patterns run through Accuray's acquisitions — what it looks for, how it pays, and how it folds in what it buys.

01
Acquisition criteria
Scale through a single transformational deal.
Rather than a steady tuck-in cadence, Accuray made one defining acquisition: TomoTherapy in 2011. Management framed scale as decisive in capital-equipment markets — the deal more than doubled Accuray's installed base from 226 to over 550 systems and pushed combined revenue past $400 million, roughly 30% of it recurring service revenue.
TomoTherapy Incorporated
02
Capital deployment
Combining complementary radiation modalities.
Accuray paired its CyberKnife radiosurgery platform with TomoTherapy's helical IG-IMRT systems, serving complementary patient populations treated by the same medical specialty — from high-precision radiosurgery for localized disease to image-guided, intensity-modulated therapy for more advanced sites.
TomoTherapy Incorporated
03
Integration approach
Cost synergies and recurring service revenue.
The rationale leaned on a larger installed base to make revenue more predictable and service more efficient; management targeted $25 million of combined operating-expense savings in fiscal 2013, primarily from corporate overhead and marketing, and expected accretion in the fiscal year beginning July 1, 2012.
TomoTherapy Incorporated

The Full Deal Book

1 acquisitions — each with the deal value, financing structure, target revenue, and executive commentary where disclosed.

01 TomoTherapy Incorporated · Madison, Wisconsin, USA $277M
Announced Mar 2011• Closed Jun 2011 •Cash and stock
Helical TomoTherapy platformimage-guided intensity-modulated radiation therapy (IG-IMRT)radiation therapy service and installed base

TomoTherapy (Nasdaq: TOMO), headquartered in Madison, Wisconsin, developed advanced radiation therapy systems for cancer care, best known for its helical TomoTherapy platform for image-guided, intensity-modulated radiation therapy (IG-IMRT). The acquisition combined TomoTherapy's IG-IMRT systems with Accuray's CyberKnife radiosurgery platform. Consideration was $4.80 per TomoTherapy share, paid as $3.15 in cash plus 0.1648 shares of Accuray common stock per share, valuing the deal at roughly $277 million and representing a 30.8% premium to TomoTherapy's March 4, 2011 closing price. approximately $277 million.

Why it was attractive
  • TomoTherapy's helical IG-IMRT installed base more than doubled Accuray's system count (from 226 to more than 550 systems across 32 countries)
  • adding recurring service revenue and a complementary treatment modality
The transaction strengthens Accuray's position as the leading innovator in the field of radiation oncology and will enhance our growth strategy. This transformational transaction significantly increases our global market presence, creates financial benefits from operating efficiencies and overhead reductions, and creates exciting new revenue opportunities for us.Euan S. Thomson — Ph.D., President and CEO, Accuray
This is an exciting opportunity for TomoTherapy to combine its best-in-class radiation therapy products with Accuray's gold-standard radiosurgery products to improve treatment for cancer patients worldwide. This combination creates a single, strong organization that will be better positioned for success.Frederick A. Robertson — M.D., President and CEO, TomoTherapy

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