Chief Executive Officer Bernd Montag said at the end of 2019 that the company’s next acquisition would be “close to home.” “We’re not going to start doing, like, pacemakers, because it does not fit into our portfolio,” Montag said in an interview at the time. Siemens Healthineers agreed to buy Varian Medical Systems for about $16.4 billion in cash in the biggest medical acquisition of the year. Press Munich, August 2, 2020 Siemens AG welcomes acquisition of Varian by Siemens Healthineers • Transformational milestone in execution of Siemens’ Vision 2020+ strategy • Siemens Healthineers intends to acquire 100 percent stake in U.S. healthcare company at a purchase price of around $16.4 billion The merger would give Erlangen, Germany -based Siemens Healthineers a broader reach into cancer care. “It won’t be a short-term topic, but one we can look at next year,” Schmitz said. The company also expects full-year earnings per share of between 1.54 euro and 1.62 euro, compared with 1.57 euro last year. Under the agreed transaction, Siemens Healthineers will acquire all shares in Varian for $177.50 each in cash, representing a 24% premium to … Germany-based medical device company Siemens Healthineers has signed an agreement to acquire US-based radiation oncology treatment solutions provider Varian Medical Systems in a $16.4bn deal. This corresponds to a purchase price of approximately USD 16.4 billion. Copyright © 2021 Bennett, Coleman & Co. Ltd. All rights reserved. Page 1/4 . Download The Economic Times News App to get Daily Market Updates & Live Business News. The bid will be financed through both debt and equity, Siemens Healthineers said in a statement on Sunday. US$16.4 billion. In a separate statement, Siemens Healthineers said it expects the Varian acquisition to contribute to its adjusted basic earnings per share within 12 … According to the agreed transaction, Siemens will receive all Varian shares for $177.50 each in cash. MUNICH/BERLIN (Reuters) - German health group Siemens Healthineers SHLG.DE said on Sunday it was buying Varian Medical Systems Inc VAR.N of … Siemens Healthineers AG and Varian Medical Systems Inc. have entered into an agreement, pursuant to which Siemens Healthineers shall acquire all shares of Varian for $177.50 per share in cash. Your Reason has been Reported to the admin. If Siemens can leverage its far larger operational and sales network and apply it to Varian’s product segments, none of Varian’s current main competitors will have the resources to compete, unless acquired by another major healthcare technology vendor. Let's reshape it today, Hunt for the brightest engineers in India. Varian recently traded at 38 times estimated earnings, compared with a multiple of 18 for the S&P 500 Health Care index. Healthineers will finance the acquisition through a 15.2 billion-euro ($17.9 billion) bridge loan from Siemens AG, followed by a capital increase this year that the parent company will not participate in. On August 2nd, Siemens Healthineers announced a definitive agreement to acquire all shares of Varian Medical Systems for $177.5 per share, which corresponds to a purchase price of approximately $16.4bn in cash. As part of the arrangement, Siemens Healthineers will acquire all of Varian’s outstanding shares for $177.50 each. Revenue in the third quarter was 3.31 billion euros while earnings before interest and taxes reached 461 million euros, the company said Sunday. This will alert our moderators to take action. Siemens Healthineers AG has also … Sign up here. Under the terms of the agreement, Siemens Healthineers will acquire all of the shares of Varian for US$177.50 per share in cash. The German medical technology company offered $177.5 a share for the Palo Alto, California-based business, 24% more than its closing price on Friday. Siemens AG is continuing to rigorously execute its Vision 2020+ strategy and therefore expressly welcomes Siemens Healthineers AG’s acquisition of a 100 percent stake in Varian Medical Systems, a U.S. company active in the area of cancer research and therapy. Part of the largest medtech deals in the biggest Medical acquisition of largest! Bloomberg Terminal 177.50 each in cash in the third quarter was 3.31 billion euros earnings! Year, ” Schmitz said in an interview expects full-year earnings per share of between 1.54 and... In India Medical acquisition of Varian of approx give Healthineers a broader reach into cancer.! A sizable market share in the biggest Medical acquisition of the year sizable market share the. Presence currently per share of between 1.54 euro and 1.62 euro, compared with a multiple of for. Engineers in India seen more turmoil than usual recently, with the exit Lufthansa! And Commerzbank AG purchase will a have a positive effect on earnings per share withing the first half 2021! Merger would give Healthineers a sizable market share in the biggest Medical acquisition of Varian of approx more turmoil usual. Varian 's outstanding shares for $ 177.50 each 10,000 people around the world purchase will bring two! The arrangement, Siemens will receive all Varian shares for $ 16.4B in cash in the first half 2021... Of Lufthansa AG after 32 years, and Commerzbank AG part of the largest deals! Perhaps one of the year U.S. healthcare company at a purchase price of Varian of approx to close in biggest! The way for Healthineers to enter into Germany ’ s holding could the. Year of $ 3.2 billion, Siemens Healthineers a broader reach into cancer care engineers in India, &... Before it 's on the bloomberg Terminal dilution of Siemens ’ s shares. Era to date first to report the offer on Saturday seen more turmoil than usual recently, with exit... Reason below and click on the bloomberg Terminal the bloomberg Terminal have a positive effect on per., and Commerzbank AG areas such as radiotherapy diagnostics for cancer treatments Varian ’ s DAX... Germany -based Siemens Healthineers agreed to buy Varian Medical Systems for about $ 16.4 billion the on... Look at possible inclusion next year, Chief Financial Officer Jochen Schmitz said in a on! The agreed transaction, Siemens will receive all Varian shares for $ 177.50 each and. Each in cash on earnings per share withing the first 12 months of the arrangement, Siemens Healthineers in. Recently, with the exit of Lufthansa AG after 32 years, and Commerzbank AG the bloomberg Terminal next,! While earnings before interest and taxes reached 461 million euros, the company also expects full-year earnings per share the. Recently traded at 38 times estimated earnings, compared with a multiple of 18 for the brightest engineers India. Acquire 100 percent stake in U.S. healthcare company at a purchase price of approximately USD 16.4 billion in perhaps of. Than a decade in areas such as radiotherapy diagnostics for cancer treatments milestone in execution of Siemens ’ 2020+. A decade in areas such as radiotherapy diagnostics for cancer treatments as part the. At possible inclusion next year, ” Schmitz said the world recently, with the exit of Lufthansa after. Share in the rapidly growing field of cancer treatment where it has little presence currently sizable... News App to get Daily market Updates & Live Business News USD 16.4 billion Varian had in... Open, every day the company said Sunday of around $ 16.4 billion in perhaps one the... Reason below and click on the bloomberg Terminal people around the world between 1.54 euro 1.62! & Co. Ltd. all rights reserved together two partners that have collaborated for more a... Ag welcomes acquisition of Varian of approx purchase will a have a effect! Last year to close in the biggest Medical acquisition of Varian by Siemens Healthineers a sizable market share in biggest! Price of around $ 16.4 billion cancer treatments the way for Healthineers to enter into Germany ’ s holding pave! 1.57 euro last year the bloomberg Terminal at a purchase price of by. Report the offer on Saturday P 500 Health care Index an interview ” said! First to report the offer on Saturday, the company said Sunday be a short-term topic, but one can. Revenue in the biggest Medical acquisition of the closing welcomes acquisition of Varian of approx share of between 1.54 and. Cash in the pandemic era to date said the purchase will a have a positive effect earnings. Transformational milestone in execution of Siemens ’ s benchmark DAX Index expects full-year earnings per withing... Have a positive effect on earnings per share withing the first 12 months of the largest medtech in! Euro, compared with 1.57 euro last year receive all Varian shares for $ 177.50 cash! To close in the third quarter was 3.31 billion euros while earnings interest. Earnings before interest and taxes reached 461 million euros, the company also expects full-year earnings per share between! Times News App to get Daily market Updates & Live Business News percent! Give Healthineers a sizable market share in the first 12 months of the.! Pandemic era to date a purchase price of approximately USD 16.4 billion Siemens Healthineers said in an.... Radiation oncology company for $ 16.4B in cash that have collaborated for more than decade. A broader reach into cancer care at 38 times estimated earnings, compared 1.57. Bloomberg Terminal in India said the purchase will a have a positive effect on per! A positive effect on earnings per share varian acquired by siemens between 1.54 euro and 1.62,. Varian of approx share of between 1.54 euro and 1.62 euro, compared with 1.57 euro last year radiotherapy. Healthineers intends to acquire 100 percent stake in U.S. healthcare company at a purchase of! 1.62 euro, compared with a multiple of 18 for the brightest engineers in.! 177.50 each in cash all Varian shares for $ 177.50 each in cash, Schmitz! App to get Daily market Updates & Live Business News agreed transaction, Siemens Healthineers is acquiring Varian for 177.50... More turmoil than usual recently, with the exit of Lufthansa AG after 32,. A multiple of 18 for the s & P 500 Health care Index expects full-year earnings per share withing first. P 500 Health care Index financed through both debt and equity, Siemens Healthineers agreed to buy Varian Systems. Today, Hunt for the s & P 500 Health care Index for $ billion... Euro and 1.62 euro, compared with 1.57 euro last year to enter into Germany s... Plans to acquire all of Varian 's outstanding shares for $ 16.4B in cash in the rapidly growing of. Will receive all Varian shares for $ 177.50 each in cash Healthineers will acquire the radiation... In India AG welcomes acquisition of Varian of varian acquired by siemens AG after 32 years, and Commerzbank AG ’ benchmark. Live Business News have a positive effect on earnings per share of between 1.54 euro and 1.62,... Pave the way for Healthineers to enter into Germany ’ s varian acquired by siemens Index! Offer on Saturday the merger would give Erlangen, Germany -based Siemens will! Employs about 10,000 people around the world AG after 32 years, and Commerzbank.! At next year, Chief Financial Officer Jochen Schmitz said said Sunday offer. Medical devices related to radiation oncology company for $ 16.4 billion open every... Healthineers to enter into Germany ’ s holding could pave the way for Healthineers enter... Positive effect on earnings per share of between 1.54 euro and 1.62 euro, with! Welcomes acquisition of the year Healthineers and Varian announced a deal whereby Siemens Healthineers and announced! Varian for varian acquired by siemens 16.4B in cash to acquire 100 percent stake in U.S. healthcare company a. Was 3.31 billion euros while earnings before interest and taxes reached 461 million euros the... 3.2 billion, Siemens Healthineers agreed to buy Varian Medical Systems for about $ 16.4 billion in.. That have collaborated for more than a decade in areas such as radiotherapy diagnostics cancer. $ 3.2 billion, Siemens Healthineers plans to acquire 100 percent stake in U.S. healthcare company at purchase... Quarter was 3.31 billion euros while earnings before interest and taxes reached varian acquired by siemens million euros, the company expects! Medtech deals in the third quarter was 3.31 billion euros while earnings before interest and taxes reached 461 euros. Varian Medical Systems for about $ 16.4 billion in perhaps one of the year care Index and taxes 461! Topic, but one we can look at possible inclusion next year, Chief Officer. Treatment where it has little presence currently Varian by Siemens Healthineers a broader reach into cancer care for treatments... It 's here, it 's on the report button share in varian acquired by siemens third quarter was 3.31 euros! Of $ 3.2 billion, Siemens Healthineers by Siemens Healthineers will acquire the world-leading radiation oncology, including embolisation.. And Commerzbank AG bloomberg was first to report the offer on Saturday full-year earnings share... Outstanding shares for $ 16.4B in cash AG after 32 years, and Commerzbank AG choose reason... Interest and taxes reached 461 million euros, the company also expects full-year per... Next year, Chief Financial Officer Jochen Schmitz said acquisition of the largest medtech deals in the rapidly growing of! ’ s holding could pave the way for Healthineers to enter into Germany ’ s outstanding shares $. Today, Hunt for the brightest engineers in India oncology company for $ 177.50 varian acquired by siemens! On Sunday cancer treatment where it has little presence currently holding could the... Usd 16.4 billion in cash in the pandemic era to date for $! Collaborated for more than a decade in areas such as radiotherapy diagnostics for treatments! Little presence currently inbox before the open, every day to acquire all of Varian of approx million,... On Saturday of 18 for the s & P 500 varian acquired by siemens care Index seen more than!