TomoTherapy (TOMO) Undervalued by Accuray (ARAY)?

Some immediate feeback from some analyzing the aquisition of TomoTherapy Inc (NASDAQ:TOMO) by Accuray Inc (NASDAQ:ARAY), is TomoTherapy is undervalued in the deal.

Accuray announced it'll acquire TomoTherapy Inc for approximately $277 million in cash and stock.

Shareholoders of TomoTherapy will receive $4.80 a share, a premium of close to 31 percent to the stock's closing price on Friday.

Terms of the deal are for $3.15 a share in cash and 0.1648 share of Accuray common stock for each TomoTherapy share.

Boards of both companies have approved the merger, and is expected to close in the second or third quarter of 2011.

Starting on July 1, 2012, Accuray said it expects the acquisition to start adding the EPS of the company.

TomoTherapy was trading at $4.57, gaining $0.89, or 24.39 percent, as of 1:38 PM EST. Accuray was at $8.99, up $1.02, or 10.14 percent.