Siemens Healthineers finalizes $16.4B acquisition of Varian Medical Systems
Siemens Healthineers has finalized its acquisition of cancer care tech company Varian Medical Systems, the two announced Thursday.
After closing the deal, the Germany-based manufacturer can now offer the full gamut of cancer care services, ranging from imaging to lab diagnostics, artificial intelligence and radiation therapy.
Palo Alto, California-based Varian will now become a new business segment within Siemens, which expects to achieve synergies of nearly $360 million (USD) per year from the deal by fiscal 2025.
“With the completion of this transaction, we are now best-positioned to take two leaps together: a leap in cancer care and a leap in our impact on healthcare overall,” Bernd Montag, CEO of Siemens Healthineers, said April 15. “Together, we are establishing a strong and trusted partner capable of supporting customers and patients along the entire cancer care continuum as well as through all major clinical pathways.”
With the deal’s close, Varian’s shares ceased trading on the New York Stock Exchange before the market opened Thursday. Siemens first announced its plan to buy the company back in August and scored European regulatory approval in February. Officials pegged the price at $16.4 billion at the time, but did not give a final figure in the announcement.
The firm is also reportedly exploring a sale of its ultrasound business line, Bloomberg reported earlier this week.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.