Following the recent announcement that Siemens Healthineers will acquire Varian Medical Systems;

Aurojyoti Bose, Lead Analyst at GlobalData, a leading data and analytics company, offers his view on the deal:

“This US$16.4bn deal is the largest transaction by Siemens Healthineers since it was spun-off and formed as a separate business entity by Siemens in 2018. Varian’s oncology related devices and software will allow Siemens Healthineers to expand into the oncology space while also creating a world leader in oncology solutions.

“Moreover, Varian is considered a leader in radiation therapy and this deal is expected to provide Siemens Healthineers a sizeable market share.

“The combination will see the creation of a global healthcare leader offering end-to-end cancer care solutions and is also in line with Siemens Healthineers’ ambitions to become a global leader in oncology solutions by 2025.

“Such big-ticket deals amid growing investor cautiousness due to COVID-19 outbreak is a welcome sign and also showcase the resilient nature of the pharmaceutical, healthcare and medical equipment industries.”