August 2, 2020
Siemens Healthineers Plans to Acquire Varian for $16.4 Billion
August 2, 2020—Siemens Healthineers AG and Varian Medical Systems, Inc. announced an agreement for Siemens Healthineers to acquire all shares of Varian for $177.50 per share in cash, corresponding to a purchase price of approximately $16.4 billion.
Varian focuses on cancer care, especially radiation oncology and related software. The company is headquartered in Palo Alto, California, and employs approximately 10,000 people worldwide.
The agreement was unanimously approved by Varian’s Board of Directors, which recommended that Varian shareholders approve it. The acquisition of Varian is expected to close in the first half of the calendar year 2021, subject to approval by Varian shareholders, receipt of regulatory approvals, and satisfaction of other customary closing conditions.
Siemens Healthineers, based in Erlangen, Germany, plans to finance the acquisition of Varian with a mix of debt and equity.
According to the announcement, Varian is increasingly leveraging technologies such as artificial intelligence, machine learning, and data analysis to improve cancer treatment and expand access to care. In the fiscal year 2019, the company generated revenues of $3.2 billion with an adjusted operating margin of approximately 17%.
Since 2012, Siemens Healthineers and Varian have been collaborating in the strategic “EnVision” partnership, combining Varian’s therapeutic systems and Siemens Healthineers imaging technology. This transaction builds on this partnership to develop improved cancer therapy solutions, including imaging for treatment planning to focused radiation therapy, for efficient workflow, and effective, personalized treatment, stated the companies.