Varian Medical Systems and Varex Imaging Corporation are officially two separate businesses. The transaction was completed, according to both companies, via a distribution of Varex stock to Varian stockholders of record on January 20, 2017.
Varian stockholders received 0.4 shares of Varex for every one share of Varian they held as of the record date of January 20, 2017, according to statements. Varian has approximately 94 million shares outstanding, and Varex has approximately 38 million shares outstanding. In connection with the separation, Varian received a $200 million cash payment from Varex.
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The spin-off has been in the works since at least May 2016, when Dow Wilson, CEO of Varian Medical Systems, told HCB News why the separation was in the works
. "The business objectives and growth strategies of the imaging and oncology businesses are going in different directions," he said. "They are two distinct businesses with fundamentally different products, customers, territories, and sales and marketing needs."
With the transaction successful, Varex will be a high-volume manufacturer of imaging components such as X-ray tubes, flat panel detectors and high-voltage connectors, as well as a supplier of imaging software and specialized accelerators for high-energy X-ray imaging.
Varian will now deal exclusively in medical devices — such as linear accelerators and proton therapy units — and software for treating and managing cancer.
"We are very pleased that we were able to complete this successful separation and create two strong independent companies," said Wilson, who will also serve on the board of directors for Varex, in a statement released today.
In other executive shake-ups, Magnus Momsen has been named senior vice president and corporate controller for Varian, replacing Clarence Verhoef, who has assumed the role of chief financial officer for Varex. Also, Dr. Ruediger Naumann-Etienne and Dr. Eric R. Reinhardt have left the Varian board of directors &mdash which has been reduced to eight members — to join the board of Varex.