Accuray (NASDAQ:ARAY), a maker of cancer therapy systems, said Monday it has agreed to acquire industry peer TomoTherapy (NASDAQ:TOMO) in a $277 million cash and stock deal.
The combined company will have more than 550 cancer therapy systems installed in 32 countries. In 2010, the two companies had combined revenue of $416 million. Accuray said it expects the acquisition to add to its earnings in 2012.
Under the deal, Accuray will pay $3.15 in cash and $1.65 in shares for each TomoTherapy share. The total $4.80-per-share consideration represents a 30.8% premium to TomoTherapy’s closing share price last Friday.
The deal, subject to the approval of TomoTherapy's shareholders and other closing conditions, is expected to close in the second quarter or early in the third.
Since the announcement, TomoTherapy's shares surged almost 26% to $4.62 as of 9:54 am EST.