Siemens Healthineers completes acquisition of Varian, strengthening its position as a holistic partner in healthcare | Varian

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Siemens Healthineers completes acquisition of Varian, strengthening its position as a holistic partner in healthcare

- Transformative combination accelerates the company's impact on global healthcare and establishes a strong partner for customers and patients along the entire cancer care continuum and for many of the most threatening diseases.

- Varian becomes new business segment within Siemens Healthineers; important step in the implementation of its Strategy 2025

- Synergies of at least EUR 300 million per annum expected to be achieved in fiscal year 2025

 

Siemens Healthineers AG (Frankfurt: SHL) today 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 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 today.

This press release is available at https://www.corporate.siemens-healthineers.com/press/releases/varian-closing, further information at https://www.corporate.siemens-healthineers.com/press/features/varian.

 

Siemens Healthineers Media Contact

Stefan Schmidt
+49 152 02307361
stefanssschmidt@siemens-healthineers.com
Ulrich Kuenzel
+49 162 2433492
ulrich.kuenzel@siemens-healthineers.com
Philipp Grontzki
+49 152 03350194
philipp.grontzki@siemens-healthineers.com

Follow the press team on Twitter: https://twitter.com/siemenshealthpr

 

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 digitalizing 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, in-vivo diagnostics, and innovative cancer care. 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 generated revenue of €14.5 billion and adjusted EBIT of €2.2 billion. Following the acquisition of Varian Medical Systems, Inc. the company has approximately 65,000 employees worldwide. Further information is available at www.siemens-healthineers.com.

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This announcement includes "forward-looking statements". These statements contain the words "anticipate", "believe", "intend", "estimate", "plan", "expect", "target" and "will" and words of similar meaning. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Siemens Healthineers' financial position, business strategy, the expected financial impact of the acquisition of Varian (including costs and revenue synergies), plans and objectives of management for future operations (including the achievement of costs and revenue synergies) are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Siemens Healthineers to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Siemens Healthineers' present and future business strategies and the market environment in which Siemens Healthineers will operate in the future. Each of the companies referred to in this announcement, the relevant group entities and their respective affiliates, agents, directors, officers, employees and advisers, expressly disclaims any obligation or undertaking to update any forward-looking statements contained herein. All forward-looking statements only speak as of the date when they were made and Siemens Healthineers neither intends, nor assumes any obligation, unless required by law, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to consider these factors carefully in evaluating the forward-looking statements in this announcement and not to place undue reliance on such statements.

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Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures to which they refer.
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Please find further explanations to our financial key performance indicators in chapter "A.2 Financial performance system" and in the notes to the consolidated financial statements note 29 "Segment information" in the Annual Report 2020 of Siemens Healthineers. Additional information on reconciliations is also included in the Analyst Presentation. These documents are available under the following internet link https://www.corporate.siemens-healthineers.com/investor-relations/presentations-financial-publications.