Siemens Healthineers has signed an agreement to acquire cancer care technologies and solutions provider Varian in a deal valued at around $16.4bn.
Under the deal, Siemens Healthineers will purchase all outstanding shares of Varian by paying $177.50 per share in cash, representing a premium of around 24% to the closing price of its common stock on 31 July.
The combined company will provide an integrated platform of end-to-end oncology solutions to address the complete continuum of cancer care ranging from screening and diagnosis to care delivery and post-treatment survivorship.
Both firms will combine diagnostic tools, imaging, radiotherapy and artificial intelligence (AI) capabilities to facilitate efficient diagnosis, increase treatment quality and access, personalised precision cancer care.
Varian CEO and president Dow Wilson said: “Siemens Healthineers’ innovative leadership in detection and diagnosis will extend our ability to serve clinicians and patients from the very first stage in the fight against cancer. And, we will be positioned to transform care for a greater number of patients worldwide.”
Varian offers various advanced products for use in different application, including radiosurgery, radiotherapy, proton therapy and brachytherapy. It also offers interventional solutions and software solutions.
The company is also using advanced technologies such as AI, machine learning and data analytics to improve cancer treatment, as well as expand access to care.
Varian will operate as an independent company within Siemens Healthineers following the completion of the deal
Subject to approval by Varian shareholders, receipt of regulatory approvals and other customary closing conditions, the deal is expected to be completed in the first half of this calendar year.
Upon completion of the deal, Varian is expected to be operated as an independent company within Siemens Healthineers.
Siemens Healthineers CEO Dr 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.”
Goldman Sachs is acting as exclusive financial advisor to Varian, while Wachtell, Lipton, Rosen & Katz is serving as legal counsel.
In June this year, Siemens Healthineers secured emergency use authorisation (EUA) from the US Food and Drug Administration (FDA) for its SARS-CoV-2 total antibody test.
