Cancer treatment vendor Varian Medical Systems will acquire Calypso Medical Technologies, which sells software enabling real-time tumor tracking and motion management during radiosurgery and radiotherapy.

Under terms of a definitive agreement, Varian will pay about $10 million for Calypso, with additional compensation based on meeting performance thresholds during a 30-month period. The companies expect the sale to close in early October.

Palo Alto, Calif.-based Varian sells the Aria electronic health record system for radiation oncology. The vendor also sells medical imaging systems and other treatment products, such as tiny radioactive seeds that are placed into or next to an area requiring treatment.

Seattle-based Calypso uses GPS technology and electromagnetic transponders to track target location in real-time to improve the precision of prostate cancer treatments. The transponders are implanted into the prostate or prostate bed and tracked so that beams can be delivered to targeted tumors using medical linear accelerators, such as Varian's TrueBeam product, according to the companies. Calypso has received federal approval for a clinical study of real-time tracking of lung cancer tumors during radiation delivery. The company has more than $15 million in annual revenue.

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