Varian Plans to Spin Off Imaging Components Business

Varian Medical Systems (Varian, Palo Alto, CA, USA) intends to turn its imaging components unit into an independent publicly traded company, which will be spun off by means of a tax-free distribution to Varian stockholders.

The new Varian Imaging Components spin-off will be a 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. Among the products manufactured will be X-ray tubes, flat panel detectors, connectors and accessories for imaging, and workstations and software for computer-aided diagnostics and image processing.

According to the company, the spin-off will give the two fundamentally different businesses the independence to optimize their strategies and operations to pursue growth strategies in their unique core markets, and sharpen the focus of each business and align their employee incentives and performance more closely with serving the specific needs of their respective markets.

Upon completion of the transaction, Varian Medical Systems will continue to operate as one of the largest medical device companies focused on cancer treatment, with about USD 2.5 billion in annual revenues. It will concentrate on systems for treating and managing cancer, with distinct businesses in radiation oncology and proton therapy that will provide hospitals, clinics, and healthcare systems around the world with equipment, software, and services for radiotherapy, radiosurgery, brachytherapy, and proton therapy.

“The spin-off will create two strong, independent companies. It will enable Varian to focus on expanding its position as a global cancer company with leading technology and services,” said Dow Wilson, CEO of Varian Medical Systems. “It will empower the new company to grow as a global leader in components, software and services for expanded imaging applications and markets.”

Varian Medical Systems itself emerged from a successful spin-off in 1999 when the company spun off Varian Semiconductor Equipment Associates and Varian, each of which was subsequently acquired.

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