With AI for cancer treatment in the mix
Siemens Healthineers AG has agreed to acquire oncology and medical software specialist Varian Medical Systems in a deal valued at $16.4 billion.
Varian manufactures a variety of cancer therapy equipment, and uses AI in cancer treatment.
Healthineers will acquire all outstanding shares of Varian in an all-cash deal for a premium of about 24% of the closing price of Varian’s common stock.
The combined company plans to 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.
"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,” said Dr. Bernd Montag, CEO of Siemens Healthineers AG.
“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 healthcare more than ever before."
The companies are expected to integrate diagnostic tools, imaging, radiotherapy, and AI capabilities with the goal of increasing the efficiency of diagnosis, and treatment quality.
"The combination brings us even closer to realizing our transformative vision of a world without fear of cancer,” said Dow Wilson, president and CEO of Varian.
“Siemens Healthineers' innovative leadership in detection and diagnosis will extend our ability to serve clinicians and patients from the very first stage in the fight against cancer. 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."
Pending approval by Varian shareholders and regulators, the transaction is expected to close in the first half of 2021.