Siemens Healthineers to acquire Varian Medical Systems for $16.4 billion

BERLIN (Reuters) – German health group Siemens Healthineers said on Sunday it would 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.

Under the agreed transaction, Siemens Healthineers will acquire all shares in Varian for $177.50 each in cash, representing a 24% 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, 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,” said Bernd Montag, CEO of Siemens Healthineers.