After acquiring Varian for $16.5B, Siemens Healthineers has the most comprehensive portfolio in the medtech sector

-Youssef El Madani, Kings College London

Deal Overview

Acquirer: Siemens Healthineers

Target: Varian Medical Systems

Total Transaction Value: $16.5 billion

Close Date: Q2 2021

Target Advisor: Goldman Sachs

On April 15th 2021, Siemens Healthineers annouced the closing of Varian Medical Systems’ acquisition, putting the German-based healtchare giant in the lead in the global radiation therapy market. The deal was valued at $16.5 billion.

“Together, we are establishing a strong and trusted partner capable of supporting customers and patients along the entire cancer care continuum as well as through all major clinical pathways.”

-Dr. Bernd Montag, Siemens Healthineers CEO

Acquiring Company : Siemens Healthineers

Siemens Healthineers is a world leader in medical imaging, laboratory diagnostics and hospital information systems.

Credits: Siemens Healthineers

Founded: 2017

Headquarters: Erlangen, Germany

CEO: Bernd Montag

Number of Employees: 66,000 (2021)

Revenue: €14.46 billion (2020)

Target Company : Varian Medical Systems

Varian Medical Systems is an U.S-based manufacturer of medical devices and software used in radiation oncology treatments.

Credits: Varian Medical Systems

Founded: 1948

Headquarters: Palo Alto, California, U.S.

CEO: Dow R. Wilson

Number of Employees: 10 000 (2018)

Revenue: $2,919.1 million (2018)

Net income: $150.3 million (2018)


The combined company would have a complementary portfolio that include oncology treatment, medical imaging equipment and artificial intelligence technology.

“With Varian, Siemens Healthineers has the most comprehensive portfolio in the MedTech sector, which offers the company considerable potential for value creation. With a highly integrated approach, Siemens Healthineers will take the global fight against cancer to a new level” 

-Prof. Ralf P. Thomas, M.D., Chairman of the Supervisory Board of Siemens Healthineers AG

The acquisition of Varian would add approximately $3 billion of revenues to the balance sheet of Siemens, bringing the total annual revenues to nearly $20 billion. Moreover, Siemens Healthineers expects to save $359.2 million per year in EBIT (earning before interest and taxes) by 2025, through exploiting the synergies between the two firms.

The main driver behind this acquisition is to use ‘artificial intelligence in the creation of analytics algorithms to bolster data-driven precision medicine and improve cancer diagnosis, care delivery and post-treatment survivorship.’ It is part of a strategic partnership between the two firms called EnVision, which aims to improve the quality of radiation therapy treatment by seeking earlier and more accurate detection of cancer.

“By bringing together our unique and highly complementary portfolios and capabilities, we will support oncology clinicians and patients in achieving better outcomes and move even closer to achieving our vision of a world without fear of cancer”

-Chris Toth, Varian CEO


On February 19th 2021, the European Commission has approved the proposed acquisition of Varian Medical Systems by Siemens AG, through its subsidiary Siemens Healthineers. However, the approval is conditioned by the full compliance of Siemens with its offered commitments. Indeed, in order to address the Commission’s competition concerns, Siemens Healthineers offers to continue to ‘ensure interoperability between its medical imaging solutions and rivals’ radiotherapy solutions and between its radiotherapy solutions and rival’s imaging solutions, by providing the relevant information and technical assistance to third parties and customers’.

High quality medical imaging and radiotherapy solutions are crucial to diagnose and treat cancer. The efficiency and safety of treatment relies on the ability of these products to work together. Our decision will make sure that radiotherapy patients receive the best possible treatment by ensuring that the rivals of Siemens Healthineers and Varian will have all the information and help they need to make their products work smoothly with those of the parties and to continue innovating. With the interoperability commitments, the merger can go ahead whilst preserving competition and innovation in these markets.”

-Margrethe Vestager, Executive Vice-President in charge of competition policy
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