Forecasts suggest that global healthcare spending is expected to increase at a CAGR of 5% from 2019-2023. The acquisition of Varian allows for the creation of deeply integrated and comprehensive products and services in cancer care. This was mainly due to the decline in hardware product revenues from Oncology Systems due to customer capital constraints and site access challenges, resulting from Covid-19. Check out our insights and innovations that will shape the future of healthcare. Siemens is listed on the stock exchanges of Frankfurt, Main and Xetra with a market capitalization of €42.774bn. Together, we will create a multi-disciplinary global healthcare leader that is even better equipped to serve our customers and redefine cancer care for millions of patients globally. The company is listed on the New York Stock Exchange (NYSE). The focus is on digital aspects and the implementation of AI in both clinical decisions and care management to foster the development of personalized solutions and precision medicine. The financing will be provided through a combination of debt and equity. The industry is characterized by high barriers to entry, high margins and counter-cyclical revenues. This transaction builds on the long-standing collaboration between Siemens Healthineers and Varian to develop improved cancer therapy solutions. Common goals and strategies for the mid- and long-term period create a better match between the two firms and enhance the probability of the deal’s success. Siemens Healthineers will acquire 100% of Varian’s outstanding shares for $177.50 per share, representing a 24% share premium over Varian’s closing price of $142.72 on July 31 ,2020 and a 42% premium over the 30-day weighted average. Such resilience was partially driven by the company’s business model and the healthy geographic diversification of the group. Varian hat eine endgültige Vereinbarung über den Zusammenschluss mit Siemens Healthineers getroffen. Combining Varian's Energy, its innovative delivery systems and treatment planning tools with Siemen's Vision, its imaging excellence, this "EnVision" partnership expands the possibilities in cancer treatment. Dive Brief: Siemens Healthineers will buy radiation oncology systems and software maker Varian Medical in an all-cash deal valued at $16.4 billion, the companies announced Sunday, confirming a Bloomberg report Saturday. Siemens Healthineers: Varian-Übernahme sorgt für Unmut beim Dax-Anwärter 16,4 Milliarden US-Dollar schwer: Siemens Healthineers: Varian-Übernahme sorgt … The acquisition is expected to close in the first half of calendar year 2021 as it is subject to the approval of Varian’s shareholders and regulatory approvals. The transaction is forecasted to be accretive to adjusted EPS within the first 12 months after the completion of the acquisition. Post was not sent - check your email addresses! Weitere Informationen. The cancer therapy and research company is being acquired by Germany-based Siemens Healthineers. In this perspective, technology facilitates greater value at a reduced cost. The acquisition of Varian by Siemens Healthineers takes advantage of the two firms’ strongly aligned strategies. During the 2020 fiscal year, Siemens Healthineers AG produced total revenues of €14,460 million. The current share price is moving around the level announced in the acquisition agreement on August 2nd, 2020 ($175), which implies a market cap of approximately $16bn. Kristen Buan. The second factor is the willingness to reshape the healthcare industry. Siemens Healthineers still expects to close the merger with Varian in the first half of calendar year 2021. Subscription rights will probably be excluded. Since 2012, they have been working together successfully in their strategic “EnVision” partnership to shape the future of cancer treatment, combining Varian’s innovative therapeutic systems and Siemens Healthineers leading imaging technology. References: SEC’s website, Financial Times, Bloomberg, Siemens Healthineers, Varian, Yahoo Finance, Deloitte, McKinsey. Varian to Combine with Siemens Healthineers in $16.4 Billion All-Cash Transaction, Varian Stockholders Approve Combination with Siemens Healthineers. 8 月 2 日、Varian は Siemens Healthineers と統合するための正式契約を締結したことを発表しました。この統合により、お客様をサポートする上で、また世界中の多くの患者様のためにがん医療を再構築する上で、より優れた多分野にわたるグローバルヘルスケアリーダーが誕生することになります。 Below you will find a number of important resources related to this announcement, including the press releases we have issued, an email we sent to our customers, and FAQs for our stakeholders. Ethos Therapie. On the other side, Varian’s objectives are linked to improving efficiency, the exploitation of new technologies such as Artificial Intelligence or machine learning and the creation of long-term growth through the expansion in emerging geographies and businesses. Eine Adaptive Intelligence™ Lösung. Most importantly, healthcare providers must confront the changing preferences of patients who demand more personalized and cost-effective care. On August 2, we announced that Varian has entered into a definitive agreement to combine with Siemens Healthineers. The rationale behind the Siemens Healthineers’ acquisition of Varian can be identified in two core factors. The transaction will be first financed through a €15.2bn bridge facility which will be granted by Siemens Finance B.V. Siemens intends to repay 50% of the amount of the bridge loan through the issuance of new equity at Siemens Healthineers level, which will increase the free float. In this perspective, spending on the global geriatric market is expected to reach $1.4 trillion by 2023. Brings Together Highly Complementary Portfolios to Empower Clinicians and Patients in … COVID-19. Enter your email address to subscribe to BSMAC and be up to date on our analyses. Varian Medical Systems Inc., up $31.45 to $174.17. The $16.4 billion purchase of Varian Medical Systems not only gives Siemens Healthineers AG an entry into cancer treatment -- one of the hottest areas in medical technology -- … Moreover, the sector benefits from several trends and growth drivers including an increasingly ageing population, rising prevalence of chronic diseases, technological advancements and the expansion of health-care systems in emerging markets. Siemens spun off (of corporate action where a company “splits off” a section as a separate business) Siemens Healthineers in 2018 but retains an 85% stake in the business. Visit now. 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. Deal Structure: Siemens Healthineers will acquire 100% of Varian’s outstanding shares for $177.50 per share, representing a 24% share premium over Varian’s closing price of $142.72 on July 31 ,2020 and a 42% premium over the 30-day weighted average. The two firms will combine their competences in diagnostic, imaging and radiotherapy to offer a broader spectrum of high-quality diagnosis, treatment and cancer care solutions for patients. /PRNewswire/ -- Varian ... this combination reflects the compelling value and important opportunity to shape the future of healthcare we see with Siemens Healthineers," said … The deal will create a global leader in healthcare with a comprehensive portfolio to fight cancer – from imaging for treatment planning to focused radiation therapy. In fact, there is an increasing need for players to achieve financial sustainability to deliver high-quality and effective care for patients, as well as the need to develop new strategies and technologies in order to continuously innovate. It is focused on delivering proton therapy, another form of external beam radiotherapy which might be preferred for treating certain cancers, particularly tumors near critical structures. Siemens has for some time been gradually changing direction in its digital strategy, away from large enterprise data management segments towards more targeted diagnostic and operational products. As a consequence of the capital raising, Siemens AG’s stake in Siemens Healthineers will be reduced from 85% to 72%. Weitere Informationen. Es soll einen Milliardendeal geben. Varian erzielte im Geschäftsjahr 2019 einen Umsatz von USD 3,2 Milliarden und eine adjustierte operative Marge von ca. The exploitation of a mix of revenue and cost synergies arising by the scale of the two firms, the cross-selling opportunities and the complementarity between different offerings, and the network of R&D activities are only some of the advantages projected for the company in the next few years. In a recent interview with the online newsletter Examining Healthcare, Siemens Healthineers AG CEO Bernd Montag stresses the importance of the process of digitization in the healthcare industry, which provides insight as to the company’s future direction. Siemens Healthineers, in which industrial conglomerate Siemens holds a majority stake, said it will buy all shares in Varian Medical Systems, Inc. for $177.50 per share in cash. Founded in 2017 and based in Erlangen, Siemens Healthineers AG is a German multinational company operating in the medical equipment and devices industry. On one side, Siemens Healthineers’ upgrading phase strategy aims at expanding the business in adjacent growth markets in the mid-term period, and in addition to structural costs savings, it prioritizes the creation of next-gen products and platforms that focus on the digital dimension, data and AI. Being at the forefront of innovation for more than 70 years, the company is increasingly leveraging technologies to develop and deliver multidisciplinary, integrated cancer treatment. Varian is a world leader in the field of cancer care, with innovative solutions especially in radiation oncology and related software. Varian stockholders had approved the takeover at a special meeting on October 15, 2020. PALO ALTO, Calif., Oct. 15, 2020 /PRNewswire/ -- Varian (NYSE: VAR) today announced that its stockholders have voted to approve the previously announced pending combination with Siemens Healthineers AG (Frankfurt: SHL) at a special meeting. Just Eat – Takeaway.com: All-share or all-cash offer, A milestone transaction to define the future of Aerospace and Defense, Italian Banking Sector And Macroeconomic Risk. For Siemens Healthineers, the Varian software asset is a great fit. Indeed, technology and digital transformation are key growth drivers as they represent the foundation for new care delivery models, driving cheaper, more precise and less invasive treatments and therapies. In terms of performance, the company reported total revenues of $3,168 million in FY 2020, 2% lower than the previous year. On August 2, we announced that Varian has entered into a definitive agreement to combine with Siemens Healthineers. The adjusted EBIT of €2,230 decreased by 10%; the year-over-year decline is mainly ascribable to the performance of the Diagnostics segments and the negative spillovers of the COVID-19 pandemic. Two proven leaders in medical technology, Varian and Siemens have joined together in pursuit of shaping the future of cancer care. Both were only slightly impacted by the current Covid-19 context. With Siemens Healthineers, we will offer an integrated platform of end-to-end oncology solutions to address the … The desired impact on the industry should be originated by a strong cultural fit between Varian and Siemens Healthineers, in terms of innovation and purpose-driven culture. German health group Siemens Healthineers said it would acquire Varian Medical Systems in a deal that values the US maker of devices and software for cancer treatments at $16.4bn. Learn more. Varian stockholders voted overwhelmingly in favor of the transaction. The … How healthcare experts are managing the crisis. Varian to Combine with Siemens Healthineers in $16.4 Billion All-Cash Transaction. It operates in more than 70 countries worldwide and comprises 54,300 employees. EBIT synergies are expected to amount to €300 mln per annum in fiscal year 2025 and to increase sharply in subsequent years. Varian is the market leader in the field of cancer care, including radiation oncology, the use of artificial intelligence, machine learning and data analysis. FILE PHOTO: A staffer works on a magnetic resonance imaging machine at … Indeed, providing healthcare to the growing ageing population is currently among the key concerns for governments as life expectancy has significantly increased reaching an average of 74.7 years. Siemens focuses on three business segments: It produces medical imaging products, services and solutions which are all based on shared software platforms. It comprises a series of integrated and marginally invasive products and services within different fields such as oncology and cardiology. With Siemens Healthineers, we will offer an integrated platform of end-to-end oncology solutions to address the entire continuum of cancer care, from screening and diagnosis to care delivery and post-treatment survivorship. Der Medizintechnikkonzern Siemens Healthineers aus Erlangen will im US-Geschäft deutlich zulegen - und greift für Varian tief in die Tasche. Varian has entered into a definitive agreement to combine with Siemens Healthineers. Varian announced that it has entered into a definitive agreement to combine with Siemens Healthineers AG in an all-cash transaction valued at $16.4 billion on a fully diluted basis. The Operating Income in FY 2020 was $323 million, which implies an operating margin of 10.2%, down from approximately 12% in 2019. BERLIN - German health group Siemens Healthineers said on Sunday it would acquire Varian Medical Systems Inc in a deal that values the U.S. maker of devices and software for cancer treatments at $16.4 billion. ... Finance Systems Intern at Varian Medical Systems. Together, we will create a multi-disciplinary global healthcare leader that is even better equipped to serve our customers and redefine cancer care for millions of patients globally. It provides laboratory diagnostics services and products and point-of-care testing. More. Siemens-Varian Strategic Partnership. The board of directors of Varian has already approved the transaction unanimously. It offers products for interventional oncology procedures and treatments, including cryoablation, microwave ablation and embolic particles. The total equity value of this all-cash transaction is $16.4 bn which corresponds to 34 times Varian’s forward earnings. Sorry, your blog cannot share posts by email. From this perspective, the acquisition of Varian Medical Systems acquisition will result in a global healthcare leader with the most comprehensive cancer treatment portfolio in the industry. Siemens Healthineers Expands Into Cancer Care With $16.4 Billion Deal for Varian. Informationen für Kunden von Varian zum COVID-19-Virus. Marathon Petroleum Corp., up … Market Communications Professional at Siemens Healthineers San Jose, California 152 connections. Siemens Healthineers releases test kit for Coronavirus COVID-19 Computed Tomography (CT) images used in evaluation of infectious disease Ultrasound systems for bedside imaging (Bloomberg) -- Siemens Healthineers agreed to buy Varian Medical Systems for about $16.4 billion in cash in the biggest medical acquisition of … Siemens Healthineers Shape 21 at AACC. Die Siemens AG setzt ihre Strategie Vision 2020+ weiter konsequent um und begrüßt daher ausdrücklich den Erwerb von 100 Prozent der Anteile an Varian Medical Systems, Inc. (NYSE: VAR), einem US-amerikanischen Unternehmen aus dem Bereich der Krebsforschung und -therapie, durch die Siemens Healthineers AG. Die Vereinbarung sieht vor, dass Siemens Healthineers sämtliche Aktien von Varian für USD 177,50 pro Aktie in bar erwerben soll. The Advanced Therapies and the Imaging segments have grown, while a slight decline has been reported for Diagnostics. Since 2012, Siemens Healthineers and Varian have been working together successfully in the strategic “EnVision” partnership to shape the future of cancer treatment, combining Varian’s innovative therapeutic systems and Siemens Healthineers leading imaging technology. The two firms aim at improving their position in the sector and consolidating an already existing partnership between the two companies. Dies entspricht einem Kaufpreis von Varian von rund USD 16,4 Milliarden. After the announcement of the deal, Varian’s share price rose by 22%, whilst Siemens’s share price fell by 6.7% as markets were concerned about the high price of the transaction. 17%. Siemens Healthineers agreed to buy Varian Medical Systems for about $16.4 billion in cash in the biggest medical acquisition of the year. It designs, manufactures, sells and services hardware and software products for treating cancer with conventional radiotherapy and advanced treatments. Moreover, the acquisition aims at accelerating the enrichment of digital offerings and exploiting larger sales, R&D and production, thus possibly making cancer care more accessible and affordable. The healthcare sector is among the world’s largest and fastest-growing industries and has been one the most resilient to the current pandemic. Net income was 10% lower than the previous fiscal year amounting to €1,423 million. 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, Inc. (NYSE: VAR), a U.S. company active in the area of cancer research and therapy. Siemens Healthineers enables healthcare providers worldwide to increase value by empowering them on their journey towards expanding precision medicine, transforming care delivery, improving patient experience and digitalizing healthcare. Thanks to our employees for making this possible. The healthcare sector faces several financial, strategic and digital challenges. Join to Connect. Kristen Buan The rest of the bridge loan will be repaid with new debt issued at Siemens AG level; the latter will borrow additional debt capital externally through bonds and transfer funds to Siemens Healthineers via loans at market conditions. The creation of a highly integrated portfolio for cancer care under its several dimensions and phases, and the reinforcement of the firms’ position in the healthcare industry. Siemens Healthineers and Varian announced a deal whereby Siemens Healthineers will acquire the world-leading radiation oncology company for $16.4B in cash. Inside the healthcare sector, the Diagnostics and Imaging with Advanced Therapies divisions represent Siemens Healthineer’s core businesses. We’re honored to be Great Place to Work-Certified™ again! Founded in 1948 and based in Palo Alto (California), Varian is a world leader in the field of cancer care, with innovative solutions especially in radiation oncology and related software.