Siemens Healthineers has rubber stamped a deal to buy Varian Medical Systems, in a cash transaction that pegs the medical equipment manufacturer at $16.4bn (£12.5bn).
The price agreed, $177.5 a share, represents a more than 20% premium to the stock’s closing price on Friday. The deal will be financed through debt and equity, Siemens Healthineers said in a statement on Sunday.
The deal, first reported on Bloomberg on Saturday, will create a “multi-disciplinary global healthcare leader with the most comprehensive cancer care portfolio in the industry,” Varian said in a released statement.
The combined company will offer an integrated platform of end-to-end oncology solutions to address the entire continuum of cancer care, from screening and diagnosis to care delivery and post-treatment survivorship.
Bernd Montag, CEO of Siemens Healthineers, 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.”
Varian President and Chief Executive Officer Dow Wilson said: “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.”
The deal brings together the highly complementary diagnostic tools, imaging, radiotherapy and AI capabilities across both companies
Varian and Siemens Healthineers will lead the digital transformation of oncology healthcare, enabling more efficient diagnosis, increased treatment quality and access, personalised precision cancer care, and improved outcomes for millions of patients worldwide, the company said.
The transaction is expected to close in the first half of calendar year 2021, subject to approval by Varian shareholders, receipt of regulatory approvals and other customary closing conditions.