RTTNews | Aug 2, 2020 09:25PM EDT

21:25 Sunday, August 2, 2020 (RTTNews.com) - Varian Medical Systems Inc. (VAR), a U.S. company active in the area of cancer research and therapy, said Sunday that it reached a deal to merge with German health group Siemens Healthineers AG (SMMNY.PK) in an all-cash transaction valued at $16.4 billion.

As per the terms of the agreement, Siemens Healthineers will acquire all outstanding shares of Varian for $177.50 per share in cash, representing a premium of about 24% to the closing price of Varian's common stock on July 31, 2020.

It expected that the transaction will close in the first half of calendar year 2021.

Varian expects to continue to operate under the Varian name as an independent company within Siemens Healthineers following the completion of the transaction.

Separately, Siemens (SIEGY.PK, SMAWF) said it welcomed the deal. The payment of the purchase price is to be enabled by mixed financing from the issuance of new Siemens Healthineers shares and the issuance of bonds by Siemens. The proceeds from the bonds are to be transferred within the Group to Siemens Healthineers under customary market conditions.

Siemens said that its stake in Siemens Healthineers will decline to about 72 percent from 85 percent, due to the planned capital increase at Siemens Healthineers. Siemens will not participate in the planned capital increase.

Read the original article on RTTNews ( https://www.rttnews.com/3117108/siemens-healthineers-to-buy-varian-medical-in-16-4-bln-deal.aspx)

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