Daily Management Review

Siemens Healthineers to buy Varian for $16.4B


Siemens Healthineers (SH) has agreed to purchase all shares of the American pharmaceutical company Varian Medical Systems.

Siemens Healthineers to buy Varian for $16.4B
For each share, the German manufacturer will pay $ 177.5, which is 24% higher than its value at the close of trading on Friday. In total, the deal is valued at $ 16.4 billion.

Varian is a global leader in cancer drug development. With the growth in cancer worldwide, SH sees Varian as an asset with great potential for growth. Cancer cases rose from 14 million in 2010 to a projected 25 million in 2030. For the German pharmaceutical company, this means that the 20 billion market will grow by 6-10% per year, Siemens Healthineers said in a presentation.

“Through this takeover, we are significantly strengthening our position in addition to cardiology and neurology in the oncology field,” SH CFO Jochen Schmitz told Reuters.

source: reuters.com