Siemens Healthineers AG and Varian Medical Systems Inc. have entered into an agreement, pursuant to which Siemens Healthineers shall acquire all shares of Varian for $177.50 per share in cash. This corresponds to a purchase price of approximately $16.4 billion.
Following the announcement that Siemens Healthineers will acquire Varian Medical Systems a lead analyst at GlobalData shared his insights regarding the deal.
“This $16.4 billion deal is the largest transaction by Siemens Healthineers since it was spun-off and formed as a separate business entity by Siemens in 2018. Varian’s oncology related devices and software will allow Siemens Healthineers to expand into the oncology space while also creating a world leader in oncology solutions,” Aurojyoti Bose, lead analyst at GlobalData, said. “Moreover, Varian is considered a leader in radiation therapy and this deal is expected to provide Siemens Healthineers a sizeable market share.”
“The combination will see the creation of a global health care leader offering end-to-end cancer care solutions and is also in line with Siemens Healthineers’ ambitions to become a global leader in oncology solutions by 2025,” he added.
Bose added that the deal is a good sign amid the COVID-19 pandemic.
“Such big-ticket deals amid growing investor cautiousness due to COVID-19 outbreak is a welcome sign and also showcase the resilient nature of the pharmaceutical, health care and medical equipment industries,” he said.