The spin off will be a new, stand-alone public company separated through a tax-free distribution to Varian stockholders with the transaction expected to close by the end of 2016.
The spun-off company will manufacture X-ray tubes, flat panel detectors, connectors and accessories for imaging, as well as supplying workstations and software for computer-aided diagnostics and image processing.
“As a trusted imaging components partner, we have a laser focus on providing our customers with high-quality and cost effective products that enable them to develop and deliver new next-generation imaging systems.Excellence in imaging is a top priority and this is evident in the new company name,” imaging components prez and future Varex Imaging CEO Sunny Sanyal said in a press release.
Varian said the name was chosen to reflect “the 65-plus years of technology leadership and strong industry brand recognition of Varian and the excellence in X-ray imaging technology,” according to a press release.
Varex imaging will pursue its own growth strategies independent from Varian, through offering of components, software and services for expanded imaging applications and markets, according to the company.
Varian 1st announced its plans to spin-off the business in May this year. The spun-off company is expected to have annual revenues of $575 million annually and will employ 1,300 employees worldwide, Varian said.
Sunny Sanyal, current prez of Varian imaging components will take the corner office as the new CEO, with Varian controller Clarence Verhoef taking the CFO spot.
The company did not disclose any additional details of the transition.