Theragenics Corporation (TGX)

[surf1944]

2:06AM Theragenics acquires Core Oncology's prostate brachytherapy customer base; Expected to be accretive to earnings and to generate positive operating cash flow in 2012 (TGX) 1.62 : Co announces that it has purchased Core Oncology's prostate brachytherapy customer base. The asset acquisition was effective on February 17, 2012. The total purchase price is structured as an "earn-out" equal to one times the actual revenue generated from the acquired customers over the twelve month period beginning September 2012 and ending August 2013 in excess of a $2.5 million threshold amount. Theragenics paid $3.8 million in cash at closing as prepayment of a portion of the earn-out, and will make quarterly earn-out payments thereafter. The Company expects to fund the quarterly earn-out payments from operating cash flow and existing cash balances. Additionaly color includes: $5-6 mln of incremental revenue expected in brachytherapy segment for remaining portion of calendar 2012; Expected to be accretive to earnings and to generate positive operating cash flow in 2012; Total earn-out based purchase price is expected to be ~$7.5-10.5 mln, which is based on anticipated revenue in the earn-out period of $10-13 mln from the acquired customers, adjusted for a $2.5 mln threshold amount. Core's prostate brachytherapy sales were ~$13 mln for their fiscal year ended June 30, 2011 and $4 mln for the six months ended December 31, 2011.