Varian Medical Systems Acquires Cancer Treatment Services International for $283 Million to Expand Global Oncology Care

VCBeat (WeChat Official Account: vcbeat) has learned that Varian Medical Systems, a world-leading manufacturer of medical devices and software, recently announced the acquisition of Cancer Treatment Services International (CTSI), an international cancer diagnosis and treatment service center, for $283 million.

Varian Medical Systems, Inc. was founded in California in 1948 and primarily treats cancer and other diseases through radiation therapy, radiosurgery, proton therapy, and brachytherapy. The company provides informatics software for managing comprehensive cancer clinics, radiation therapy centers, and medical oncology practices. Additionally, Varian supplies X-ray imaging products and digital detectors for cargo screening and industrial inspection to various medical, scientific, and industrial enterprises.

CTSI was founded in 2006 as a private company providing integrated clinical and administrative solutions. Initially, the company focused exclusively on outpatient radiation therapy and medical oncology services. Through a series of strategic development initiatives, CTSI plans to expand its offerings into a broader range of medical specialties.

Varian stated that the acquisition would enhance its expertise in operating cancer care centers and establish new global partnerships. The company added that the deal also expands the geographic reach of its Cancer Treatment Services International (CTSI) business.

“Patients and clinicians are at the core of our thinking as we evolve into a company with a broad foundation in cancer treatment,” said Dow Wilson, CEO of Varian. “This acquisition will enable us to better help oncology centers worldwide accelerate access to technology-driven healthcare services, thereby driving cost-effective innovation.”

“CTSI Co-Founder and Executive Director Andrew Shogan stated, ‘Our mission is to reduce the rising global incidence of cancer. Following the acquisition, we will work together with Varian to provide better solutions for cancer patients.’”

Varian stated that it is financing the acquisition through its credit facilities and cash reserves, and expects to complete the transaction within two weeks. For the fiscal year ended March 31, 2019, CTSI reported full-year 2018 revenue of $43.5 million.

Varian added that, with the acquisition of CTSI, it has lowered its fiscal 2019 non-GAAP net earnings per share guidance to a range of $4.55 to $4.70, down from the previously expected range of $4.60 to $4.75.

Earlier this month, Varian announced that it had acquired Cyber Heart, a private medical technology company specializing in cardiac radiation therapy technologies, and signed a collaboration agreement with Shandong Cancer Hospital in China for the application and research of proton therapy.

(Compiled by: Li Chengping)