Siemens Ally Buys Cancer Specialist -- WSJ
August 03 2020 - 3:02AM
Dow Jones News
By Tom Fairless
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (August 3, 2020).
FRANKFURT -- Siemens Healthineers AG, a medical technology
spinoff of the German conglomerate, said it would acquire
U.S.-based Varian Medical Systems Inc. for $16.4 billion, roughly
25% above its current market value.
The deal will create a world leader in the area of cancer
therapy, Siemens deputy CEO Roland Busch said in a statement
Sunday.
Varian, based in Palo Alto, Calif., specializes in cancer
treatments including radiation therapy and related software. It has
around 10,000 employees globally and revenue of $3.2 billion in
fiscal 2019, Siemens said.
The conglomerate said its stake in Siemens Healthineers, based
in Erlangen, Bavaria, would fall to about 72% from 85% as a result
of a capital increase to fund the deal, in which Siemens won't
participate. Siemens had spun off its medical technology unit in
2018.
"A transformational step of this kind wouldn't have been
possible in the conglomerate structure of the old Siemens AG,"
Siemens President and CEO Joe Kaeser said in a statement.
The deal, to be financed through a capital increase and new
debt, is expected to close in the first half of 2021, subject to
approval by Varian shareholders and regulatory approvals, Siemens
said.
Siemens said it would "remain a strong majority shareholder and
thus profit from the company's considerably expanded setup."
Write to Tom Fairless at tom.fairless@wsj.com
(END) Dow Jones Newswires
August 03, 2020 02:47 ET (06:47 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Varian Medical System (NYSE:VAR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Varian Medical System (NYSE:VAR)
Historical Stock Chart
From Sep 2023 to Sep 2024