On Sunday, Siemens Healthineers, a medical technology affiliate of Siemens AG, agreed to purchase California-based cancer therapy company Varian Medical Systems for $16.4 billion in an all-cash transaction. As part of the arrangement, Siemens Healthineers will acquire all of Varian’s outstanding shares for $177.50 each. The merged company intends to enhance its cancer care, screening, and diagnosis capabilities.
According to Varian’s press release, the combined company will become “a multi-disciplinary global healthcare leader with the most comprehensive cancer care portfolio in the industry.”
The develops hardware and software for radiation therapy and shares “highly complementary diagnostic tools [and] imaging” with Siemens Healthineers. Fierce Biotech explained, “Their ultimate goal is to provide an overarching and comprehensive oncology portfolio, adding Varian’s linear accelerators, radiosurgery devices and proton therapy suites to Siemens’ various imaging hardware, laboratory diagnostics and hospital consulting services.”
CEO of Siemens Healthineers AG Dr. Bernd Montag believes the acquisition would mark a significant improvement for cancer treatments. “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,” He said. “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.”
Varian CEO Dow Wilson similarly noted that the combined company will provide valuable, improved cancer care. “We are thrilled to partner with [Siemens] to extend our renowned customer care to reach more patients around the world,” he said. “With Siemens Healthineers, we can accelerate our vision, meaningfully increase our patient care impact and broaden opportunities for our employees as part of a larger and more diversified organization.”
Though the transaction is subject to approval by regulators and Varian shareholders, it is expected to close in the first half of 2021. Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Varian and Goldman Sachs & Co. LLC is serving as financial advisor.