3/5/2012 8:38:21 AM
PALO ALTO, Calif., March 5, 2012 /PRNewswire/ -- Varian Medical Systems, Inc., (NYSE: VAR) today announced it has reached an agreement to acquire InfiMed, Inc., a privately-owned, leading supplier of workstations including hardware and software for processing diagnostic X-ray images. The acquisition, which is expected to close in early April subject to the satisfaction of certain closing conditions, will operate within Varian's X-Ray Products segment. The agreement provides that Varian will pay approximately $15 million for InfiMed plus earnouts based on sales of InfiMed products achieved over the next 24 months. Varian expects that the acquisition will be about neutral to earnings per diluted share in fiscal 2012.
"The addition of InfiMed will enable Varian to better serve its X-ray customers as a one-stop shop for x-ray tubes, flat panel image detectors, and workstations, said Robert Kluge, President of Varian's X-Ray Products business. "InfiMed's products and know-how will enable us to provide more fully integrated X-ray component solutions to our customers. This could provide our customers with easier more seamless integration of Varian components into their systems and help users achieve improved performance in their imaging systems. We also hope to enable equipment developers to reduce time to market and access niche markets that might otherwise be out of reach."
"This is an exciting development for our business and our employees," said Amy Ryan, President of InfiMed. "By joining with Varian, we will be able to offer our leading technology in digital image processing to more customers around the world. The combination of Varian and InfiMed creates a powerful force for further advancements in X-ray imaging."
Founded in 1983, InfiMed generates some $15 million in annual revenues by developing and supplying X-ray equipment manufacturers around the globe with specialized software and hardware for medical imaging applications, including radiography and fluoroscopy, digital radiography, cardiology and angiography. The company has about 60 employees working in facilities near Syracuse, New York.
Varian Medical Systems, Inc., of Palo Alto, California, is the world's leading manufacturer of medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, and brachytherapy. The company supplies informatics software for managing comprehensive cancer clinics, radiotherapy centers and medical oncology practices. Varian is a premier supplier of tubes and digital detectors for X-ray imaging in medical, scientific, and industrial applications and also supplies X-ray imaging products for cargo screening and industrial inspection. Varian Medical Systems employs approximately 5,900 people who are located at manufacturing sites in North America, Europe, and China and approximately 70 sales and support offices around the world. For more information, visit http://www.varian.com.
Except for historical information, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning industry outlook, including customer demand for, use and acceptance of, and developments in products or technology for X-ray imaging; the outlook for digital imaging and image processing technology; the outlook for our orders, sales, backlog, or earnings growth; future financial results and any statement using the terms "will," "expect," "opportunities," "hope," or similar terms are forward-looking statements that involve risks and uncertainties that could cause our actual results to differ materially from those anticipated. Such risks and uncertainties include the ability to effectively integrate the products and services of InfiMed into our product offerings and sales and marketing operations; the ability to retain the services of key InfiMed personnel; demand for our and InfiMed products; our ability to develop and commercialize new products or new applications for commercially available products; the impact of competitive products and pricing; our ability to maintain or increase operating margins; our ability to protect our intellectual property; the risk of operations interruptions due to events beyond our control; and other risks listed from time to time in our filings with the Securities and Exchange Commission. We assume no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.
FOR INFORMATION CONTACT:
Spencer Sias (650) 424-5782
SOURCE Varian Medical Systems