National

Pro Rata

Axios Pro Rata

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.

Siemens Healthineers to buy Varian Medical Systems for $16.4 billion

It's a bet that not even the pandemic will slow down the demand for new cancer technologies.

Business

Mergers and acquisitions

Health Care

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&#x27;s largest merger so far in 2020.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

The U.S. faces a range of health care flashpoints — unaffordable drugs, opioids, vaping — as we debate whether to adopt universal care. For now, the Affordable Care Act is the law of the land, but Republicans want to issue it a final death blow.

Siemens Healthineers to buy Varian Medical Systems for $16.4 billion

Go deeper