Varian Medical Systems to Acquire Zmed, Inc. | Varian

{ "pageType": "news-article", "title": "Varian Medical Systems to Acquire Zmed, Inc.", "articleDate": "2003/10/13", "introText": "", "category": "Corporate and Financial Releases" }

Varian Medical Systems to Acquire Zmed, Inc.

PALO ALTO, Calif--Oct. 13, 2003--Varian Medical Systems, Inc. (NYSE: VAR - News) today announced anagreement to acquire Zmed, Inc., a privately-held and rapidly-growing supplier
of radiation oncology software and accessories for ultrasound-based,
image-guided radiotherapy (IGRT), stereotactic radiation treatments, and image
management. Varian Medical Systems will pay approximately $35.5 million in
cash for the business, subject to certain adjustments.

"This acquisition will add elegant 3D ultrasound imaging capabilities to
Varian Medical Systems' image-guided radiotherapy products," said Dick Levy,
CEO and Chairman of Varian Medical Systems. "It also makes it possible for
Varian to offer radiation oncology departments a new line of stereotactic
positioning accessories and planning software for treating patients with
ultra-precise, hypofractionated radiotherapy or radiosurgery. We are
continuing to enhance the versatility and capability of Varian's integrated
radiation oncology system." The acquisition also includes Zmed's line of
servers and software for storing, accessing, transferring and reviewing
patients' diagnostic images among medical professionals and support staff via
local networks and the Internet. "We expect this to be a significant
enhancement to the image management function, particularly within our VARiS
Vision software product," Levy said. Varian expects the acquisition will add
annualized revenues of $16 million to $18 million in the first year and be
neutral to slightly accretive to earnings for the company. "We are hopeful
that our worldwide sales and service network will lead to faster adoption of
Zmed's already successful products and technology," said Levy. Zmed revenues
have grown at about 60 percent per year for each of the last three years. It
has systems at more than 110 customer sites. "Becoming part of Varian Medical
Systems, enables us to integrate Zmed technology into the world's most
comprehensive radiation oncology systems," said Marc Buntaine, president and
CEO of Zmed. "We are extending our reach through a global sales and service
network so that we can make better technology available to more patients
sooner. I can't see a faster or better way to commercialize our technology."
Zmed and its approximately 30 employees will continue to operate from its base
near Boston, Massachusetts under the direction of Buntaine. It will be a part
of Varian's Oncology Systems' business segment. The transaction is expected to
be closed by the middle of November and is not subject to any pre-closing
regulatory filings.