Varian Medical Systems, a radiation oncology treatment solutions provider, has signed a definitive agreement to acquire Cancer Treatment Services International (CTSI) for $283m.
CTSI runs the American Oncology Institute in Hyderabad, India along with ten multidisciplinary cancer centres across the country.
In the US, the company operates an Oncology Solutions division engaged in delivering cancer care services to healthcare providers globally.
Varian expects the deal to boost identification of unmet clinical and operational needs in a bid to enable technology and services advancements.
The combined companies will have the potential to develop new multidisciplinary solutions using clinical information benefiting oncologists. These solutions are intended to provide better care for patients.
Furthermore, these offerings will enable expansion of Varian’s solutions as well as boost the growth of its oncology systems business.
Varian Medical Systems president and CEO Dow Wilson said: “Our acquisition of CTSI is consistent with this strategy and will allow us to better support oncology centres 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 added that the acquisition will bolster its expertise in cancer centre operations. The deal will also facilitate new alliances to offer advanced care in developed and emerging markets.
In turn, the transaction will extend the reach of CTSI’s technology-enabled clinical solutions.
CTSI co-founder Stanley Marks said: “Effectively addressing the growing global cancer burden requires not just new technology and research, but also new ways of collaborating and partnering.
“This acquisition should now expand the development and implementation of new solutions for cancer care around the world.”
In the fiscal year ended 31 March this year, CTSI recorded annual revenues of $43.5m.
Varian estimates that the deal will be accretive to its earnings per share during fiscal year 2021 on a non-GAAP basis and fiscal year 2022 on a GAAP basis.