August 03, 2020 – Siemens Healthineers will acquire Varian Medical Systems (Palo Alto, CA) for about $16.4 billion in cash. Siemens offered $177.5 a share for Varian, 24% more than its closing price on Friday. The bid will be financed through both debt and equity, Siemens Healthineers says.
The purchase will bring together two partners that have collaborated for more than a decade in areas such as radiotherapy diagnostics for cancer treatments. According to Fortune, the deal would give Siemens Healthineers a sizable market share in the rapidly growing field of cancer treatment where it has little presence currently.
Healthineers will finance the acquisition through a $17.9 billion bridge loan from Siemens AG, followed by a capital increase this year that the parent company will not participate in. As a result, Siemen’s stake in Healthineers will decline to about 72% from 85%, Siemens said in a statement.