The medical technology group Siemens Healthineers wants to buy the US company Varian Medical Systems, which specializes in cancer care, for $ 16.4 billion (around 14 billion euros). This was announced by the Siemens subsidiary listed in the MDax. Varian shareholders are expected to receive $ 177.50 per share. Varian's board of directors approved the plan and recommended that shareholders accept the offer.
The acquisition of Varian is expected to be completed in the first half of the 2021 calendar year, subject to Varian shareholders' approval, regulatory approvals, and other customary closing conditions. Siemens Healthineers plans to finance the acquisition in about half through loans and the other half through new equity, which the company intends to raise by issuing new shares.
Varian had sales of approximately $ 3.2 billion in the past fiscal year, with an operating margin of 17 percent. Siemens Healthineers went public in 2018 and has been legally independent of Siemens AG since then. However, this still holds 85 percent of the Healthineers shares. The company employs around 50,000 people at locations in more than 70 countries.
Siemens AG share reduced
Siemens AG welcomed the planned acquisition. The planned increase in shareholders' equity of Siemens Healthineers AG, in which Siemens AG will not participate, will reduce Siemens AG's stake in Siemens Healthineers AG from 85 percent to approximately 72 percent.
In the second quarter of the 2019/2020 financial year, Siemens Healthineers increased sales by 3.3 percent to EUR 3.685 billion. Without the consequences of the coronavirus pandemic, growth would have been about four points higher, Siemens Healthineers said. The profit after tax in the second quarter of 414 million euros was still above the previous year's value of 381 million euros.