Zmed, Inc. (“Zmed” or the “Company”) manufactures and distributes image guided patient positioning systems for radiation oncology and stereotactic radiation therapy. The Company’s lead product, the SonArray, employs optical tracking devices and real-time 3D ultrasound reconstruction technology for precision patient positioning during radiation oncology treatments to internal organs. The optical tracking technology is also used for high-precision patient positioning during intra-cranial stereotactic radiation therapy procedures. Due to their high accuracy and ease-of-use, Zmed’s products are rapidly becoming standard tools of radiation oncologists and radiosurgeons throughout the world.

Zmed retained Stonebridge Technology Associates after it was approached by Varian Medical Systems, Inc. (NYSE: VAR) concerning a potential acquisition of Zmed. Varian is the world’s leading supplier of linear accelerator systems used to treat cancer with radiation therapy. Stonebridge assisted Zmed in evaluating the strategic logic of the transaction and assessing alternative courses of action. We led the negotiations with regard to valuation, structure and other transaction terms, and assisted the Company throughout the due diligence investigation. Varian ultimately acquired Zmed for approximately $35.5 million in an all-cash transaction. The acquisition provides Varian with important new product offerings in the radiation oncology and radiosurgery area, and offers Zmed access to a global sales and distribution network.