Elekta sells Anatomic Pathology Information System business to Sunquest

Elekta AB (publ) (STO:EKTAB) today announced it has divested its Anatomic Pathology Information System business, marketed under the brand name PowerPath®, a software line that manages workflow for laboratories offering surgical pathology, cytology, dermatopathology and autopsy services.

The consideration amounts to SEK 225 M, through an asset purchase structure on a cash and debt-free basis. The buyer is Sunquest Information Systems, Inc., a US based company providing closely related diagnostic IT solutions. During fiscal year 2010/11 the Pathology Information System generated revenues of approximately SEK 80 M and EBIT of SEK 19 M with 44 employees in the U.S. During the past ten years the organic growth rate has been modest.

"The PowerPath product line came to Elekta as part of the acquisition of IMPAC Medical Systems Inc. in 2005. PowerPath is clearly a leading brand in its sector with an impressive customer list of prestigious institutions. However, the synergies between PowerPath and Elekta have been limited and we expect that PowerPath will have good prospects with Sunquest, given their more complimentary business", said Tomas Puusepp, President and CEO of Elekta.

The transaction is expected to result in a capital gain of approximately SEK 170 M before tax and to add approximately SEK 1.10 to earnings per share in Elekta's fiscal year 2011/12.