German health group, Siemens Healthineers has announced to acquire Varian Medical Systems Inc in a deal that values the U.S. maker of devices and software for cancer treatments at $16.4 billion.
According to a report by Reuters on Sunday, under the agreed transaction, Siemens Healthineers will acquire all shares in Varian for $177.50 each in cash, representing a 24 per cent premium to the U.S. company’s closing price on Friday.
Industrial conglomerate Siemens, which spun off Healthineers in 2018 but retains a controlling stake, the report stated will provide bridge financing for the deal, which seeks to create a global leader in cancer care solutions by 2025.
“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,” the report quoted Bernd Montag, CEO of Siemens Healthineers.
Varian President and Chief Executive Officer Dow Wilson was also quoted saying, “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, first reported by Bloomberg, is subject to approval by Varian shareholders and regulators.
It is expected to close in the first half of 2021 and be accretive to Siemens Healthineers’ adjusted basic earnings per share within 12 months.
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