The Palo Alto, Calif.-based company said it plans to spin off the company through a tax-free distribution Varian stockholders, with the new company taking up the moniker Varian Imaging Components.
“The spin-off will create 2 strong, independent companies. It will enable Varian to focus on expanding its position as a global cancer company with leading technology and services. It will empower the new company to grow as a global leader in components, software and services for expanded imaging applications and markets,” CEO Dow Wilson said in a prepared statement.
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.
“By executing this transaction, we will give 2 fundamentally different businesses independence to optimize their strategies and operations to enhance their growth. The objectives and growth strategies of our imaging components and oncology businesses are now taking them in different directions. We believe making these businesses independent will give each of them more freedom to invest in and pursue new growth strategies in their unique core markets. This should sharpen the focus of each business and align their employee incentives and performance more closely with serving the specific needs of their respective markets. Investors should get greater transparency and understanding of each of these businesses,” Wilson said in prepared remarks.
The soon-to-be 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.
“This business will be able to capitalize on trends in digital imaging and build a larger presence in security and industrial applications,” Wilson said. “The new company will be able to leverage its world-renowned X-ray engineering team to work with equipment manufacturers and system integrators to develop new, next-generation imaging systems.”
The company did not disclose any additional details of the transition.