Accuray closed on its roughly $277 million deal to buy TomoTherapy, a radiation oncology developer based in Madison, Wis.
Accuray completes TomoTherapy acquisition
Sunnyvale, Calif.-based radiation oncology company Accuray is expected to cut $25 million from operating expenses through 2013, according to a news release. The expense cuts will largely target overhead and marketing. "We expect our new scale will help make revenue more predictable and assist in making the TomoTherapy service business more efficient and ultimately profitable,” Accuray Senior Vice President and CFO Derek Bertocci said in the release.
The deal, first announced in March, included $3.15 in cash and 0.1648 shares of Accuray common stock per share of TomoTherapy common stock, which is no longer to be listed on the NASDAQ. Ascension Health, the nation's largest Catholic health system, invested in TomoTherapy through its venture capital arm.
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