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Varian Medical Systems to Acquire PerkinElmer's Medical Imaging Business

By MedImaging International staff writers
Posted on 27 Dec 2016
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Varian Medical Systems (Palo Alto, CA, USA) has entered into an agreement to acquire the medical imaging business of PerkinElmer, Inc. (Waltham, MA, USA) for USD 276 million.

Varian manufactures medical devices and software for treating cancer and other medical conditions using radiotherapy, radiosurgery, proton therapy, and brachytherapy. The company supplies informatics software for managing comprehensive cancer clinics, radiotherapy centers and medical oncology practices. Varian also supplies X-ray imaging components, including tubes, digital detectors, cables and connectors as well as image processing software and workstations for use in medical settings. PerkinElmer's medical imaging business is a supplier of digital flat panel X-ray detectors that serve as components for industrial, medical, dental and veterinary X-ray imaging systems.

PerkinElmer's Medical Imaging business will be added to Varian’s imaging components business (Varex) after its planned separation from Varian in January 2017 when it will become an independent public company following the receipt of required regulatory approvals.

"This is a natural fit for our Varex business with complementary digital imaging products that will serve to accelerate our profitable growth with more than USD 140 million in new revenue," said Sunny Sanyal, the current president of Varian's Imaging Components business who is expected to become CEO of Varex. "This acquisition would add new digital imaging technology to our portfolio that would enable us to offer customers a broader range of imaging solutions and provide us with additional cross-selling opportunities. This would also expand our footprint in the industrial imaging sector. Furthermore, on a combined basis, this acquisition would give us the ability to strengthen our manufacturing productivity."

Robert Friel, chairman and chief executive officer of PerkinElmer, said, "Combining our Medical Imaging business with Varex's capabilities will better position the business to support its customers and continue to innovate and develop new imaging systems. In addition, the divestiture will allow PerkinElmer to focus our investments and accelerate growth in higher priority areas."

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