Siemens Healthineers AG buys out Varian Medical Systems

Varian Medical Systems are makers of radiation therapy hardware and software, and with Varian deal, Siemens Healthineers is projected to become a multi-disciplinary global healthcare provider, with an industry-leading, wide-ranging cancer-care portfolio. Through this association, Siemens Healthineers and Varian aim to effectively combine their highly complementary diagnostic tools, AI capabilities, and imaging and radiotherapy techniques, in order to digitally transform the entire oncology healthcare gamut and provide enhanced treatment quality, more efficient diagnosis, and personalized cancer care for patients across the world.

Deal of the Year
The biggest deal in medtech so far this year, it gives Siemens Healthineers - which formally spun out of the German conglomerate via a 2018 IPO - a suite of cancer treatment technologies, including a growing proton therapy business. Before the Healthineers offshoot was created, Siemens partnered with Varian for years, notably via Varian software powering Siemens equipment.

The purchase will be financed by a combination of loans from the company’s German conglomerate parent, Siemens AG, as well as a capital increase planned for later this year through the issuance of new shares and bonds outside the organization. Goldman Sachs served Varian as the exclusive financial advisor on the deal, while Wachtell, Lipton, Rosen & Katz acted as legal counsel.

"With this combination of two leading companies we make two leaps in one step: A leap in the fight against cancer and a leap in our overall impact on healthcare,” said Siemens Healthineers CEO Bernd Montag. The deal has been approved by Varian’s board and is expected to close in the first half of 2021. The Varian brand - expected to retain its name - and its approximately 10,000 staff will continue to operate as an independent company under Siemens after the deal closes.

Aude Ghespière