Siemens Healthineers Completes Acquisition of Varian, Strengthening its Position as a Holistic Partner in Healthcare

Siemens HealthineersSiemens Healthineers AG (Frankfurt: SHL) announced that it has successfully completed the acquisition of Varian Medical Systems, Inc. ("Varian"). The acquisition was previously announced on August 2, 2020.

"With Varian, Siemens Healthineers has the most comprehensive portfolio in the MedTech sector, which offers the company considerable potential for value creation. With a highly integrated approach, Siemens Healthineers will take the global fight against cancer to a new level," said Prof. Dr. Ralf P. Thomas, Chairman of the Supervisory Board of Siemens Healthineers AG.

"With the completion of this transaction, we are now best-positioned to take two leaps together: a leap in cancer care and a leap in our impact on healthcare overall. Together, we are establishing a strong and trusted partner capable of supporting customers and patients along the entire cancer care continuum as well as through all major clinical pathways," said Dr. Bernd Montag, CEO of Siemens Healthineers AG.

"Through the transformative combination of Varian and Siemens Healthineers, our united company will address the growing need for personalized, data-driven diagnosis and precision cancer care that enables us to fight back against globally increasing cancer rates," said Chris Toth, CEO of Varian, a Siemens Healthineers company. "By bringing together our unique and highly complementary portfolios and capabilities, we will support oncology clinicians and patients in achieving better outcomes and move even closer to achieving our vision of a world without fear of cancer."

The combined company is creating a unique, highly integrated portfolio of imaging, laboratory diagnostics, artificial intelligence and treatment for the global fight against cancer with significant potential for increased value creation. The acquisition aligns perfectly with the "Upgrading" phase of Siemens Healthineers strategy. With today's closing of the acquisition, Varian is expected to positively contribute to Siemens Healthineers adjusted basic earnings per share(1) within the first 12 months. Additionally, Siemens Healthineers aims for EBIT synergies of at least EUR 300 million per annum in fiscal year 2025.

Varian and Siemens Healthineers are building on the long-standing strategic partnership called "EnVision" to establish a comprehensive digital, diagnostic and therapeutic ecosystem that includes treatment management. With Varian, Siemens Healthineers will leverage AI-assisted analytics to advance the development and delivery of data-driven precision care and redefine cancer diagnosis, care delivery and post-treatment survivorship. Through early and accurate detection as well as more efficient diagnosis, increased treatment quality and access, Siemens Healthineers will support and accelerate Varian's mission to reduce uncertainty for cancer patients and increase the level of cancer survivorship.

Siemens Healthineers completed the first phase of its Strategy 2025 at the end of fiscal year 2019, during which the company successfully implemented its IPO and launched important product innovations such as the AI-Rad Companions. With the start of fiscal year 2020, Siemens Healthineers has entered the second phase of its "Siemens Healthineers Strategy 2025." This "Upgrading" phase will take Siemens Healthineers to the next level of profitable growth. With the acquisitions of Corindus and ECG Management Consultants, the company has already strengthened its offerings in adjacent growth areas. And, with Varian, Siemens Healthineers is well-positioned to grow in existing markets, enter adjacent fields and make new markets.

Varian's common stock ceased trading on the New York Stock Exchange prior to the opening of trading.

About Siemens Healthineers

Siemens Healthineers AG (listed in Frankfurt, Germany: SHL) is shaping the future of Healthcare. As a leading medical technology company headquartered in Erlangen, Germany, Siemens Healthineers enables healthcare providers worldwide through its regional companies to increase value by empowering them on their journey towards expanding precision medicine, transforming care delivery, improving the patient experience, and digitalising healthcare. Siemens Healthineers is continuously developing its product and service portfolio, with AI-supported applications and digital offerings that play an increasingly important role in the next generation of medical technology. These new applications will enhance the company’s foundation in in-vitro diagnostics, image-guided therapy, and in-vivo diagnostics. Siemens Healthineers also provides a range of services and solutions to enhance healthcare providers’ ability to provide high-quality, efficient care to patients. In fiscal 2020, which ended on September 30, 2020, Siemens Healthineers, which has approximately 54,000 employees worldwide, generated revenue of €14.5 billion and adjusted EBIT of €2.2 billion.

1. Before purchase price allocation effects, transaction, integration, retention and restructuring costs as well as gains and losses from divestments.

Most Popular Now

AI-Powered CRISPR could Lead to Faster G…

Stanford Medicine researchers have developed an artificial intelligence (AI) tool to help scientists better plan gene-editing experiments. The technology, CRISPR-GPT, acts as a gene-editing “copilot” supported by AI to help...

Groundbreaking AI Aims to Speed Lifesavi…

To solve a problem, we have to see it clearly. Whether it’s an infection by a novel virus or memory-stealing plaques forming in the brains of Alzheimer’s patients, visualizing disease processes...

AI Spots Hidden Signs of Depression in S…

Depression is one of the most common mental health challenges, but its early signs are often overlooked. It is often linked to reduced facial expressivity. However, whether mild depression or...

AI Model Forecasts Disease Risk Decades …

Imagine a future where your medical history could help predict what health conditions you might face in the next two decades. Researchers have developed a generative AI model that uses...

AI Tools Help Predict Severe Asthma Risk…

Mayo Clinic researchers have developed artificial intelligence (AI) tools that help identify which children with asthma face the highest risk of serious asthma exacerbation and acute respiratory infections. The study...

AI Model Indicates Four out of Ten Breas…

A project at Lund University in Sweden has trained an AI model to identify breast cancer patients who could be spared from axillary surgery. The model analyses previously unutilised information...

Smart Device Uses AI and Bioelectronics …

As a wound heals, it goes through several stages: clotting to stop bleeding, immune system response, scabbing, and scarring. A wearable device called "a-Heal," designed by engineers at the University...

AI Distinguishes Glioblastoma from Look-…

A Harvard Medical School–led research team has developed an AI tool that can reliably tell apart two look-alike cancers found in the brain but with different origins, behaviors, and treatments. The...

ChatGPT 4o Therapeutic Chatbot 'Ama…

One of the first randomized controlled trials assessing the effectiveness of a large language model (LLM) chatbot 'Amanda' for relationship support shows that a single session of chatbot therapy...

Overcoming the AI Applicability Crisis a…

Opinion Article by Harry Lykostratis, Chief Executive, Open Medical. The government’s 10 Year Health Plan makes a lot of the potential of AI-software to support clinical decision making, improve productivity, and...

Dartford and Gravesham Implements Clinis…

Dartford and Gravesham NHS Trust has taken a significant step towards a more digital future by rolling out electronic test ordering using Clinisys ICE. The trust deployed the order communications...