Varian Medical (NYSE:VAR) yesterday said it agreed to pay nearly $1.3 billion for Australia’s Sirtex Medical (ASX:SRX) and its anti-cancer microspheres.
The A$28-per-share offer, which values Sirtex at A$1.59 billion (about $1.28 billion), is slated to close in late May, Palo Alto, Calif.-based Varian said. It’s part of a bid to broaden that company’s oncology portfolio.
Sirtex makes the SIR-Sphere Y-90, a resin microsphere designed to deliver radiation therapy to liver cancers. The company put up sales of about $189.4 million (A$234.0 million) during the fiscal year ended June 30, 2017 and employs about 300 workers.
“This acquisition is the latest step in Varian’s long-term strategy to become a global leader in multi-disciplinary integrated cancer care solutions,” Varian CEO Dow Wilson said in prepared remarks. “The combination of the two companies will expand the reach of the Sirtex platform by making it more broadly available to the clinical community. Our companies share a common vision of a world without fear of cancer, and we look forward to completing this acquisition and positively impacting more patients’ lives around the world.”
Varian said it plans to fund the deal with cash and debt. It’s expected to be accretive to earnings per share during its first full fiscal year.
