Siemens Healthineers has agreed to acquire US-based Varian Medical Systems, an oncology-focused medical devices and software manufacturer, for about $16.4bn in an all-cash deal
The German medical technology company is offering the US firm $177.50 per share in a move to create a major leader in healthcare with a comprehensive portfolio to tackle cancer.
Headquartered in California, Varian Medical Systems has been engaged in developing, building, and delivering cancer care technologies and solutions for its clinical partners for more than 70 years. The company claims to tap into artificial intelligence (AI), machine learning, data analytics, and other advanced technologies to improve cancer treatment and increase access to care.
The company, which made revenues of $3.2bn in 2019, has a workforce of around 10,000 people across 70 locations in the world.
Varian Medical Systems CEO comments on joining Siemens Healthineers
Varian Medical Systems president and CEO Dow Wilson said: “Siemens Healthineers values our talented and engaged employees and recognizes the strength of the Varian brand, our cutting-edge portfolio, and the relationships we’ve nurtured.
“We are thrilled to partner with them to extend our renowned customer care to reach more patients around the world. With Siemens Healthineers, we can accelerate our vision, meaningfully increase our patient care impact and broaden opportunities for our employees as part of a larger and more diversified organization.”
Siemens Healthineers said that the combined firm will have an integrated platform of end-to-end oncology solutions to offer for addressing the full continuum of cancer care, starting from screening and diagnosis to delivery of care and after-treatment survivorship.
The German healthcare company further said that that the acquisition brings together highly complementary diagnostic tools, radiotherapy, imaging, and AI capabilities of both the firms. This is expected to enable the enlarged company to steer the digital transformation of oncology healthcare, facilitate more efficient diagnosis, boost treatment quality and access, customised precision cancer care, and better outcomes for patients across the world.
Siemens Healthineers CEO Bernd Montag said: “With this combination of two leading companies we make two leaps in one step: A leap in the fight against cancer and a leap in our overall impact on healthcare.
“This decisive moment in the history of our companies means more hope and less uncertainty for patients, an even stronger partner for our customers, and for society more effective and efficient medical care. Together with Varian’s outstanding and passionate employees, we will shape the future of healthcare more than ever before.”
Post-acquisition, Varian Medical Systems will continue to operate under its existing name as a standalone company within Siemens Healthineers.
The deal is anticipated to be completed in the first half of 2021, subject to approval from Varian Medical Systems’ shareholders, regulatory approvals and meeting of other customary closing conditions.
