PALO ALTO, Calif.--(BW HealthWire)--Nov. 6, 2000--Varian Medical Systems, Inc. (NYSE:VAR) today is announcing the abandonment of its proposed acquisition of IMPAC Medical Systems, Inc. Varian and IMPAC Medical Systems, a privately held company in Mountain View, Calif., announced an acquisition agreement on June 6, 2000, but the U.S. Department of Justice today announced its intention to challenge the transaction on antitrust grounds.
"Our intent with this acquisition was to advance and accelerate the standardization of modern multidisciplinary cancer diagnosis and treatment through integration of the best aspects of the two companies' oncology information systems," said Richard M. Levy, president and CEO of Varian Medical Systems. "We respectfully disagree with the Department of Justice's market interpretation and conclusions regarding how this acquisition would affect consumers, but we believe we would be doing our customers and investors a disservice by entering into what could be a protracted legal proceeding.
"Our goal remains the widest possible dissemination of the most advanced cancer care enabled by broad, user-friendly software tools," Levy added. "We will continue to pursue this goal through internal development as well as alliances with other software companies."
Under the terms of the agreement, Varian Medical Systems would have acquired IMPAC Medical Systems through a pooling of interests, involving the issuance of approximately 3 million common shares and 300,000 options in exchange for all IMPAC common and preferred shares and options. Varian Medical Systems will take an approximate $2 million charge in the first quarter of fiscal 2001 for costs related to this transaction.
Varian Medical Systems, Inc., (NYSE:VAR) of Palo Alto, California, is the world's leading manufacturer of integrated cancer therapy systems which are treating thousands of patients per day. The company is also a premier supplier of X-ray tubes and flat-panel digital subsystems for imaging in medical, scientific, and industrial applications. Varian Medical Systems employs approximately 2,300 people who are located at manufacturing sites in North America, Europe and in its 40 sales and support offices around the world. In its most recent fiscal year ended September 29, 2000, Varian Medical Systems reported sales of $690 million. Additional information is available on the company's web site at www.varian.com.
Forward Looking Statements
This press release contains "forward-looking" statements related to a continuing intent through internal development and alliances to standardize and disseminate multidisciplinary cancer diagnosis and treatment through software tools and information systems. Actual results may differ significantly from those projected in these forward-looking statements due to factors listed below and those detailed from time to time in our filings with the Securities and Exchange Commission. These risks and uncertainties include successful product development and market acceptance; continued services of certain key managerial, technical, and engineering personnel and the ability to attract and retain such personnel; regulatory approvals of the Company's products under applicable government regulations including the provisions of the U.S. Food, Drug and Cosmetic Act; whether competitive products will reduce sales or force prices reductions; and how changing economic conditions in markets and foreign currency fluctuations will affect the company.
CONTACT: Varian Medical Systems, Inc., Palo Alto
Spencer Sias, 650/424-5782