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.