June 21 (Bloomberg) -- Elekta AB, the world’s second-largest maker of radiation-treatment equipment, agreed to acquire closely held Nucletron BV for 365 million euros ($523 million) in cash to expand its offering in cancer treatments.
The transaction will be financed through cash and available credit facilities, Elekta said today in a statement. Elekta shares climbed as much as 5.3 percent in Stockholm, where the company is based, the biggest intraday jump since Dec. 13.
The acquisition adds brachytherapy, a treatment in which radioactive material may be placed inside cancerous tissue, to Elekta’s offering. Brachytherapy combined with external beam radiation therapy “continues to emerge as a leading course of therapy for cancer,” Chief Executive Officer Tomas Puusepp said in the statement. Elekta said June 9 that the company targets sales growth of 13 percent to 15 percent in 2015.
“We expect this acquisition to be accretive to Elekta’s cash earnings within 12 months,” Chief Financial Officer Hakan Bergstrom said today in a phone conference.
Elekta rose as much as 14.60 kronor to 289.40 kronor and traded 4.8 percent higher at 288 kronor as of 12:22 p.m.
BofA Merrill Lynch was Elekta’s financial adviser on the transaction and Jefferies International advised Nucletron. Elekta expects the deal, which has been approved by both boards, to close “in early autumn.”
To contact the reporter on this story: Janina Pfalzer in Stockholm at firstname.lastname@example.org.
To contact the editor responsible for this story: Angela Cullen at email@example.com.