Siemens Healthineers has announced it has reached an agreement to acquire Varian Medical Systems, a US company active in the area of cancer research and therapy, in an all-cash transaction valued at $16.4 billion.
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. By bringing together the diagnostic tools, imaging, radiotherapy and AI capabilities across both companies, Varian and Siemens Healthineers aim to lead the digital transformation of oncology healthcare, to enable more efficient diagnosis, increased treatment quality and access, personalised precision cancer care, the companies said in a press release.
Under the terms of the agreement, Siemens Healthineers will acquire all outstanding shares of Varian for $177.50 per share in cash, representing a premium of approximately 42% to the 30-day volume weighted average closing price of Varian’s common stock as of July 31, 2020, the last trading day prior to the announcement of the transaction, and a premium of approximately 24% to the closing price of Varian’s common stock on July 31, 2020.
“Today’s announcement represents an important milestone in our company’s history,” said Dow Wilson, president and chief executive officer of Varian. “The combination with Siemens Healthineers brings us even closer to realising our transformative vision of a world without fear of cancer.
Bernd Montag, CEO of Siemens Healthineers AG 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.”
The transaction is expected to close in the first half of calendar year 2021, subject to approval by Varian shareholders, receipt of regulatory approvals and other customary closing conditions.
Varian expects to continue to operate under the Varian name as an independent company within Siemens Healthineers following the completion of the transaction.