Deal marks first significant move for Siemens Healthineers; sets companies on path to be global oncology care leader.
In one of the most significant healthcare deals of the year, Siemens Healthineers has announced it is purchasing Varian Medical Systems for $16.4 billion. It is a move that is intended to establish a worldwide leadership position in cancer care solutions.
This is the first significant move by Siemens Healthineers, and it will broaden the company’s activities beyond diagnostic imaging into oncology. The deal was announced on Aug. 2 with Siemens committed to purchase Varian’s outstanding shares stock for $177.50 per share. This represents a premium of roughly 42 percent to Varian’s shareholders compared to what the average stock price has been over the last 30 days, the company said.
Varian simultaneously reported 2019 fiscal year annual revenues of $3.23 billion with a net income of $310.5 million. Varian’s Board of Directors approved the purchase, and the deal is set to close in the beginning half of 2021.
According to a company statement, with this deal Siemens and Varian will create a comprehensive cancer care multi-disciplinary company.
“[This] announcement 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, Varian president and chief executive officer. “The combination with Siemens Healthineers brings us even closer to realizing our transformative vision of a world without fear of cancer.”
By pairing Siemen’s detection and diagnostic capabilities with Varian’s oncology capabilities, he said, the companies will be better able to provide transformative care for oncology patients worldwide. The combined company plans to offer an integrated platform of end-to-end oncology solutions that can impact the entire continuum of cancer care from screening to diagnosis to care delivery and survivorship.
“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 Bernd Montag, Siemens Healthineers AG chief executive officer. “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.”
Once the deal is complete, the companies said, Varian would continue to operate as an independent company within Siemens Healthineers.