Varian Medical (NYSE:VAR) said today that it inked a deal to acquire Cancer Treatment Services International for $283 million.
Privately held CTSI operates the Hyderabad-based American Oncology Institute and 10 multidisciplinary radiation, medical and surgical oncology cancer centers across the Indian subcontinent and a U.S.-based oncology solutions division, Palo Alto, Calif.-based Varian said.
Varian said that it hopes the transaction will increase its expertise in cancer care center operations and allow for new global partnerships. The company added that the purchase also expands the scope and geographic reach of CTSI’s solutions.
“At Varian, the patient and clinician are at the center of our thinking as we evolve into a broad-based cancer care solutions company. Our acquisition of CTSI is consistent with this strategy and will allow us to better support oncology centers globally, accelerate access to technology-driven care and build a feedback loop that will drive cost-effective innovation. We look forward to pooling the ingenuity of our combined team with the power of data, technology and clinical insights to achieve new victories against cancer, especially for the millions of patients globally without access to appropriate care,” Varian prez & CEO Dow Wilson said in a press release.
“We are excited to continue our mission to address the growing global incidence of cancer and the disparity in access to treatment between the developed and emerging markets. Together with Varian, we will be better equipped to provide new solutions that empower more patients globally to fight cancer,” CTSI co-founder & exec director Andrew Shogan said in a prepared statement.
Varian said it is financing the acquisition through a combination of its credit facility and cash on hand, and expects it to close within two weeks. CTSI reported annual revenues of $43.5 million during its fiscal year ended March 31.
The company added that with the acquisition of CTSI, it dropped its fiscal year 2019 non-GAAP net earnings per share guidance to between $4.55 and $4.70, down from previous guidance of between $4.60 and $4.75.
Earlier this month, Varian said that it acquired privately-held CyberHeart and its cardiac radioablation tech, and that it inked a cooperative deal with China’s Shangdong Cancer Hospital for proton therapy applications and research.
