BY Fraser Tennant
In a deal which creates a global healthcare leader with a comprehensive cancer care portfolio, medical device and software manufacturer Varian Medical Systems is to combine with healthcare technology supplier Siemens Healthineers AG in an all-cash transaction valued at $16.4bn.
Under the terms of the agreement, German health group Siemens Healthineers will acquire all outstanding shares of US firm Varian for $177.50 per share in cash.
The combined company will offer an integrated platform of end-to-end oncology solutions to address the entire continuum of cancer care, from screening and diagnosis to care delivery and post-treatment survivorship.
Through the transaction, Siemens intends to address a long-term rise in the incidence of cancer – from 14 million cases in 2010 to a forecast of 25 million in 2030.
"This transaction represents an important milestone in our company's history, and our board is confident that this is the right path forward for Varian," said Dow Wilson, president and chief executive of Varian. "In addition to delivering immediate and compelling value to our shareholders, the combination with Siemens Healthineers brings us even closer to realising our transformative vision of a world without fear of cancer.
The transaction has been unanimously approved by Varian's board of directors.
“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,” said Dr Bernd Montag, chief executive of Siemens Healthineers. “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.”
The transaction is expected to close in the first half of 2021, subject to approval by Varian shareholders, receipt of regulatory approvals and other customary closing conditions. It is expected that Varian will continue to operate under the Varian name as an independent company within Siemens Healthineers.
Dr Montag concluded: “Together with Varian's outstanding and passionate employees, we will shape the future of healthcare more than ever before."
News: Siemens Healthineers to acquire Varian for $16.4 billion