Varian Medical (NYSE:VAR) said today that its board of directors approved the $200 million spin-out of the stand-alone Varex imaging components business and released more information on the distribution of Varex shares.
The Palo Alto, Calif.-based company’s new spin-out will be separated through a tax-free distribution of shares, with each Varian stockholder receiving 0.4 shares of Varex for every 1 share of Varian. No fractional Varex shares will be offered in the distribution.
The distribution is expected to complete on Jan. 28, the company said, and trading for Varex shares “when issued” is expected to begin on Jan. 20 under the Nasdaq ticker symbol “VREXV.” Shares will begin normal trading on Jan. 30 under the Nasdaq ticker “VREX,” according to a press release.
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. 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 last year. In July, Varian announced the Varex Imaging name for the spin-off.
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.