Radiation therapy vendor Varian Medical Systems has inked a definitive agreement to acquire electromagnetic localization technology developer Calypso Medical Technologies.
Varian will pay $10 million for the privately held firm, plus additional potential earnouts based on unit sales of Calypso products achieved beyond thresholds over the next 30 months.
In a statement, Timothy Guertin, Varian president and CEO, said that Calypso's tumor tracking tools will complement Varian's motion management technology. The Calypso system features the firm's GPS for the Body technology and Beacon electromagnetic transponders that combine to continuously track target location for prostate cancer treatments, without the use of ionizing radiation.
Calypso currently generates more than $15 million in annual revenues from product sales and service, and the company has an installed base of more than 110 systems in North America and Europe. Its tracking system has been used in the treatment of an estimated 10,000 prostate cancer patients, Varian said.
The deal is expected to close in October, subject to the satisfaction of certain closing conditions. It includes Calypso's intellectual property portfolio, which contains approximately 90 current and pending patents.
Varian expects that Calypso will be integrated into its Oncology Systems business segment and will continue to operate in Seattle. Varian also anticipates that the acquisition will be slightly dilutive to earnings per share in the 2012 fiscal year.
