Mubasher: German health group Siemens Healthineers signed a deal to acquire the US Varian Medical Systems Inc in an all-cash transaction worth $16.4 billion.

Under the deal, Siemens Healthineers will acquire all shares of Varian for $177.50 per share in cash, according to a statement on Sunday.

“The combination will create a multi-disciplinary global healthcare leader with the most comprehensive cancer care portfolio in the industry.”

The value of the deal represents a 42% premium to the US company’s 30-day volume weighted average closing price as of Friday, 31 July, and a 24% premium to the company’s closing price on Friday. 

“With this combination of two leading companies we make two leaps in one step: A leap in the fight against cancer and a leap in our overall impact on healthcare,” Bernd Montag, CEO of Siemens Healthineers, said.

“With Siemens Healthineers, we can accelerate our vision, meaningfully increase our patient care impact and broaden opportunities for our employees as part of a larger and more diversified organization," Dow Wilson, president and CEO of Varian, pointed out.