Siemens Healthineers Acquires US Medical Device Company for 19.5 Trillion KRW to Strengthen Cancer Treatment Division

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] German Siemens Healthineers has acquired the U.S. healthcare equipment company Varian Medical Systems for $16.4 billion (approximately 19.5 trillion KRW) to strengthen its cancer treatment sector.

According to Bloomberg and other sources on the 2nd (local time), Siemens Healthineers announced in a statement that on the 31st of last month, it acquired all shares by paying $177.5 per share in cash, which is a 24% premium over Varian's closing price. This acquisition is the first achievement since Healthineers spun off from its parent company Siemens in 2018 and is expected to be completed in the first half of next year. Bloomberg described the deal as "the largest healthcare acquisition of the year," noting Varian's market value is around $13 billion.

Varian is recognized as a leader in cancer treatment, especially in radiation oncology, utilizing artificial intelligence (AI), machine learning, and data analytics in cancer therapy. Varian and Siemens Healthineers have maintained a partnership since 2012 to improve cancer treatment and have collaborated until recently. Foreign media expect that with this acquisition, Siemens Healthineers will hold more than 50% market share in the radiation therapy sector.

Siemens Healthineers' acquisition is interpreted as preparation for the anticipated global increase in cancer incidence. According to foreign media, the number of cancer cases worldwide is projected to rise from 14 million in 2010 to 25 million by 2030. Accordingly, Healthineers expects the current $20 billion annual radiation therapy market to grow by 6-10% annually.

Dow Wilson, CEO of Varian, said this acquisition will "bring us closer to realizing our vision of a world without fear of cancer." Bernd Montag, CEO of Siemens Healthineers, expressed hope that "Varian's access to our extensive medical data pool will enable faster development of personalized and precise cancer treatments."

Siemens has agreed to provide Siemens Healthineers with a short-term loan of 15.2 billion euros for this acquisition. As a result, Siemens' stake in Healthineers will decrease from 85% to 72%, according to foreign media. Bloomberg also noted that Siemens Healthineers, through this acquisition, is likely to not only gain a high market share in cancer treatment but also be included in Germany's benchmark DAX index.

This content was produced with the assistance of AI translation services.