Varian Medical Systems to spin off Imaging Components
The transaction will be via a tax-free distribution to Varian stockholders, anticipated to be completed by the end of calendar year 2016.
"The spin-off will create two strong, independent companies," said Dow Wilson, CEO of Varian Medical Systems.
"It will enable Varian to focus on expanding its position as a global cancer company with leading technology and services. It will empower the new company to grow as a global leader in components, software and services for expanded imaging applications and markets."
"By executing this transaction, we will give two fundamentally different businesses independence to optimize their strategies and operations to enhance their growth," Wilson added.
Varian Imaging Components is a high-volume manufacturer of X-ray tubes, flat panel detectors, connectors and accessories for imaging as well as a supplier of workstations and software for computer-aided diagnostics and image processing.
When completed, the spin-off would establish the new company as a leading global supplier of components, software and engineering services for imaging equipment manufacturers and system integrators in the medical diagnostics, dentistry, veterinary care, security and industrial inspection industries.
The new imaging components company is expected to have annual revenues of about $575 million and has approximately 1,300 employees around the world. It is expected that the new company's management team will include Sunny Sanyal, president of Varian Imaging Components, as the new Chief Executive Officer, and Clarence Verhoef, Varian Controller, as Chief Financial Officer.
Additional details regarding the name, structure, leadership and financial operations of the new company will be disclosed at a later time.
Upon completion of the transaction, Varian will concentrate on providing systems for treating and managing cancer, with distinct businesses in radiation oncology and proton therapy. These businesses will provide hospitals, clinics and healthcare systems around the world with equipment, software and services for radiotherapy, radiosurgery, brachytherapy and proton therapy.
Varian will continue to operate as one of the world's largest medical device companies focused on cancer treatment, with approximately $2.5 billion in annual revenues and more than 6,000 employees around the globe. ■