“We’ll create additional free float which eventually will lift us into the DAX ,” Chief Executive Officer Bernd Montag said in an interview with Bloomberg TV. “We are very certain about this transaction, it’s the right time, and we are super confident about financing.”
The Erlangen, Germany-based maker of MRI machines and laboratory equipment announced Sunday it’s offering $177.50 a share for Palo Alto, California-based Varian, 24% more than its closing price on Friday. Bloomberg was first to report the offer on Saturday.
With Varian, Healthineers will gain market share in devices and software used for cancer therapy. Recent developments in radiation therapy, coupled with more precise imaging, have been linked to lower cancer death rates, which Montag said the company is keen to capitalize on.
The deal has “clear strategic rationale,” Citigroup analyst Kate Kalashnikova said in a note. “The combined company will have the most comprehensive cancer portfolio in the industry.”
The deal is the biggest health-care acquisition this year.
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