Aug 3, 2020 - Economy

Siemens Healthineers to buy Varian Medical Systems for $16.4 billion

Illustration: Rebecca Zisser/Axios

Siemens Healthineers, a medical tech affiliate of Siemens, agreed to buy Palo Alto-based cancer therapy company Varian Medical Systems for $16.4 billion in cash.

Why it matters: It would be the health care sector's largest merger so far in 2020.

  • The deal values Varian shares at $177.50, a 24% premium to Friday's closing price and a 42% premium to its 30-day weighted average.

The bottom line, via Axios' Bob Herman: It’s a play for a very profitable cancer device/machine company, and a bet that not even the pandemic will slow down the demand for new cancer technologies.

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