Siemens Healthineers, the medical arm of German conglomerate Siemens, has struck a deal to buy American cancer treatment specialist Varian for $ 16.4 billion (13.9 billion euros).
The buyout is expected to be finalized in the first half of 2021, subject to the approval of Varian shareholders and the necessary regulatory approvals, according to a statement from the German group.
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Varian shareholders will receive $ 177.50 per share, the statement said. Siemens Healthineers intends to finance this acquisition with a combination of loans and equity through the issuance of new shares.
Siemens Healthineers, headquartered in Erlangen (Bavaria) and employing around 50,000 people in more than 70 countries, has been listed on the Frankfurt Stock Exchange since 2018 and has been legally independent from the Siemens group since then. However, the conglomerate remains a large majority shareholder. If the Varian buyout goes through, Siemens' stake will drop from 85% to 72%.
Separately, Siemens Healthineers announced that its net profit fell 22% from April to June - the third quarter of its fiscal year lagged - compared to the same period last year, from 348 million euros to 270 millions of euros. Its turnover also fell to 3.31 billion euros, from 3.56 billion euros.
Varian reported sales of approximately $ 3.2 billion in its most recent fiscal year, with an operating margin of 17%. The Palo Alto, Calif., Company currently employs some 10,000 people worldwide. She specializes in artificial intelligence, machine learning and data analysis technologies to improve cancer treatment.
