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.
Varian’s Board of Directors unanimously approved the agreement and recommends that the Varian shareholders also approve the agreement. The acquisition of Varian is expected to close in the first half of calendar year 2021, with closing being subject to approval by Varian shareholders, receipt of regulatory approvals and satisfaction of other customary closing conditions.
Dr. Bernd Montag, CEO of Siemens Healthineers AG
“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 health care. 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. Together with Varian’s outstanding and passionate employees, we will shape the future of health care more than ever before,” said Dr. Bernd Montag, CEO of Siemens Healthineers AG.
“Varian’s innovative and patient centric culture has enabled us to become an iconic leader in radiotherapy and multi-disciplinary cancer care, with a trusted global brand and strong customer loyalty,” said Dow Wilson, president and chief executive officer of Varian. “Siemens Healthineers values our talented and engaged employees and recognizes the strength of the Varian brand, our cutting-edge portfolio and the relationships we’ve nurtured. We are thrilled to partner with Siemens Healthineers to extend our renowned customer care, serving clinicians and patients from the very first stage in the fight against cancer. With Siemens Healthineers, we will transform care for a greater number of patients worldwide, as well as broaden opportunities for our employees as part of a larger and more global organization. That is why our board is confident that combining with Siemens Healthineers is the right path forward for Varian – delivering immediate and compelling value to our shareholders, while bringing us even closer to our transformative vision of a world without fear of cancer.”
“With the acquisition of Varian, Siemens Healthineers is entering another attractive growth market that offers the company significant potential for value creation and aligns perfectly with the upgrading phase of Siemens Healthineers’ strategy. Siemens Healthineers is creating an unprecedented, highly integrated portfolio for the global fight against cancer,” said Prof. Dr. Ralf P. Thomas, chairman of the supervisory board of Siemens Healthineers AG.
Three years ago, Varex Imaging Corporation announced that its spin-off from Varian Medical Systems had been successfully completed. On August 3, 2020, Sunny Sanyal, president and CEO of Varex Imaging Corporation, congratulated Varian and Siemens Healthineers.
“We congratulate Siemens Healthineers and Varian. It’s always good news for us when two of our good customers come together to combine forces to accelerate innovation that saves lives. We look forward to continuing and growing our relationship with the new combined entity,” said Sanyal.
A HOLISTIC PARTNER FOR CANCER CARE
Varian is a world leader in the field of cancer care, with innovative solutions especially in radiation oncology and related software. In fiscal year 2019, the company generated revenues of $3.2 billion with an adjusted operating margin of approximately 17 percent. Varian is headquartered in Palo Alto, California, and currently employs approximately 10,000 people worldwide. With a holistic approach to cancer care, the company is increasingly leveraging technologies such as artificial intelligence, machine learning and data analysis to further improve cancer treatment and expand access to care.
The International Agency for Research on Cancer expects the prevalence of cancer to almost double between 2010 and 2030, with more than 50 percent of all cancer patients undergoing radiotherapy. At the same time, significant growth in therapeutic innovations is driving demand for personalized diagnosis and therapy planning, implementation and monitoring.
Varian’s decades of progress in developing and delivering multidisciplinary, integrated cancer care has kept the company at the forefront of innovation for more than 70 years. Varian thus offers an ideal fit to Siemens Healthineers leading businesses in medical imaging, laboratory diagnostics and interventional procedures.
BUILDS ON A LONG AND SUCCESSFUL PARTNERSHIP
Since 2012, Siemens Healthineers and Varian have been working together successfully in the strategic “EnVision” partnership to shape the future of cancer treatment, combining Varian’s innovative therapeutic systems and Siemens Healthineers leading imaging technology. This transaction builds on this long-standing partnership to develop improved cancer therapy solutions – from imaging for treatment planning to focused radiation therapy – for efficient workflow and effective, personalized treatment.