Siemens Healthineers To Acquire Varian In $16.4-Billion Accord

The takeover seeks to create a global leader in cancer care solutions by 2025; Siemens to provide bridge financing for subsidiary

German health group Siemens Healthineers said on Sunday it was buying Varian Medical Systems Inc of the United States for $16.4 billion in a deal that seeks to create the global leader in cancer care solutions.

The deal is the first major growth move by Healthineers since it was spun off and floated in 2018 by Siemens, which is undertaking a broader shakeup of its conglomerate structure to create room for its business units to do their own deals.

Siemens, which will retain control over Healthineers, will provide bridge financing for the deal that will be partly refinanced by a rights issue by the medical technology unit later this year.

Under the agreed transaction, Healthineers will acquire all shares in Varian for $177.50 each in cash, representing a 24 per cent premium to the US company’s closing price on Friday and 42 per cent above its 30-day weighted average.

“With this takeover, we are significantly strengthening our position - in addition to cardiology and neurology - in the field of oncology,” Chief Financial Officer Jochen Schmitz told Reuters in an interview.

CEO Bernd Montag rejected suggestions that Healthineers had overpaid for Varian. “This is an icon in our industry,” he told reporters on a conference call. “If you put it into perspective we achieved a sensible price.”