(Reuters) - Accuray Inc (ARAY.O) said it will acquire TomoTherapy Inc TOMO.O, a smaller rival in the radiation therapy system market, for about $277 million in a cash and stock deal.
TomoTherapy shareholders will get $4.80 per share, a premium of about 31 percent to the stock’s closing price on Friday.
The deal comprises $3.15 per share in cash and 0.1648 share of Accuray common stock for each TomoTherapy share.
The companies expect the deal, approved by both the boards, to close in the second quarter or the beginning of the third quarter of 2011.
The combined revenue of the companies in 2010 exceeded $400 million, they said.
Accuray sees the acquisition to add to its earnings per share beginning July 1, 2012.
UBS Investment Bank served as Accuray’s financial advisor, while BofA Merrill Lynch advised TomoTherapy.
Accuray shares closed at $10.01, while TomoTherapy shares closed at $3.67 on Friday on Nasdaq.
Reporting by Shravya Jain in Bangalore; Editing by Gopakumar Warrier