PALO ALTO, Calif., Jan. 29 /PRNewswire-FirstCall/ -- Varian Medical Systems, Inc., (NYSE: VAR) today announced it has successfully completed the acquisition of ACCEL Instruments GmbH, a privately-held supplier of scientific research instruments and proton therapy systems for cancer treatment. Varian paid approximately $30 million to acquire 100 percent of ACCEL, including its bank debt.
"We are pleased to add this promising new business to our growth portfolio," said Tim Guertin, president and CEO of Varian Medical Systems. "With ACCEL Instruments, we have the opportunity to build a several hundred million dollar business based on improving cancer care with a clinically practical and affordable system for proton therapy."
ACCEL has approximately $30 million in annual revenues. Management expects that the addition of ACCEL's operations will reduce earnings per diluted share by about $0.06 to $0.07 to between $1.82 and $1.85 in fiscal year 2007, be about neutral in fiscal year 2008, and be accretive thereafter. Results for ACCEL will be included in Varian's "Other" business category.
ACCEL, which is based in Bergisch Gladbach near Cologne, Germany, has about 250 employees. The business will report to Varian Vice President Lester Boeh, who is responsible for managing Varian's portfolio of emerging businesses.
Varian Medical Systems, Inc., (NYSE: VAR) of Palo Alto, California is the world's leading manufacturer of medical products for treating cancer and other medical conditions with radiotherapy, brachytherapy, and radiosurgery. The company is also a premier supplier of X-ray tubes and digital detectors for imaging in medical, scientific, and industrial applications. Varian Medical Systems employs approximately 3,900 people who are located at manufacturing sites in North America and Europe and in its 56 sales and support offices around the world. Additional information is available on the company's web site at http://www.varian.com/.
Forward Looking Statements:
Except for historical information, this news release contains "forward- looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning customer demand and acceptance of products or technology for proton therapy, and the outlook for Varian's orders, sales, backlog, or earnings growth; future financial results and any statements using the terms "will," "opportunity," or similar statements are forward-looking statements that involve risks and uncertainties that could cause Varian's actual results to differ materially from those anticipated. Such risks and uncertainties include the ability to integrate the operations of ACCEL into Varian and to integrate ACCEL's products into Varian products, the ability to retain the services of key ACCEL management and technical personnel; demand for Varian's and ACCEL's products; Varian's ability to develop and commercialize new products; the impact of competitive products and pricing; Varian's ability to maintain or increase operating margins; Varian's ability to protect its intellectual property; the risk of operations interruptions due to events beyond Varian's control; and the other risks listed from time to time in Varian's filings with the Securities and Exchange Commission. We assume no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.
FOR INFORMATION CONTACT: Varian Medical Systems Spencer Sias (650) 424-5782
SOURCE: Varian Medical Systems, Inc.
CONTACT: Spencer Sias, Varian Medical Systems, +1-650-424-5782
Web site: http://www.varian.com/