STOCKHOLM, Sweden--(BUSINESS WIRE)--Aug. 24, 2006--Elekta’s (STO:EKTA) acquisition of 80 percent equity of the Chinese provider of radiation therapy equipment, Beijing Medical Equipment Institute (BMEI) and the transformation of the company into a Joint Venture (JV) is finalized, after the business license has been granted by the Beijing Administration for Industry and Commerce.
On March 31, 2006, Elekta announced the signing of a contract to acquire 80 percent equity of BMEI, contingent upon approval from the Chinese Ministry of Commerce and other closing conditions. Earlier this week, the Beijing Administration for Industry and Commerce announced that it had granted a business license to the new corporate entity.
The agreement includes a future option for Elekta to call and the seller Beijing Pharmaceutical Group Co. Ltd. to put for the transferal of the remaining 20 percent equity of the JV to Elekta.
BMEI is the largest domestic Chinese supplier of radiation therapy systems with an installed base of around 260 units, a strong R&D focus and a team of highly skilled engineers.
This strategic acquisition will considerably strengthen Elekta’s position on the fast growing Chinese market for radiation therapy solutions. BMEI brings to Elekta the ability to fully meet the needs of the Chinese and other emerging markets for affordable and lower cost radiation therapy solutions. The business combination of Elekta and BMEI will poise Elekta to become a comprehensive provider of linear accelerators across the spectrum performance specifications. Management plans include that BMEI will within two years launch new and highly cost effective radiation therapy equipment aimed for the domestic and international markets, complementing the existing Elekta portfolio.
About Elekta
Elekta is an international medical-technology Group, providing meaningful clinical solutions, comprehensive information systems and services for improved cancer care and management of brain disorders. All of Elekta’s solutions employ non-invasive or minimally invasive techniques and are therefore clinically effective, gentle on the patient and cost-effective.
Clinical solutions include among others Leksell Gamma Knife® for non-invasive treatment of brain disorders and Elekta Synergy® for image guided radiation therapy (IGRT). Following the acquisition of IMPAC Medical Systems Inc. in April 2005, the Elekta Group is the world’s largest supplier of oncology software.
Elekta’s systems and solutions are used at over 3,000 hospitals around the world to treat cancer and manage clinical operations as well as to diagnose and treat brain disorders, including tumors, vascular malformations and functional disorders.
With approx. 1850 employees, Elekta’s corporate headquarter is located in Stockholm, Sweden and the company is listed on the Stockholm Stock Exchange under the ticker EKTAb. For more information about Elekta, please visit www.elekta.com.
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Contact: Elekta AB Peter Ejemyr Group VP Corporate Communications Tel: +46 733 611 000 (mobile) e-mail: peter.ejemyr@elekta.com
Source: Elekta
