BRUSSELS (dpa-AFX) - Varian Medical Systems (VAR) said on Wednesday it intends to submit an offer to acquire MeVis Medical Solutions AG, a company based in Bremen, Germany that provides image processing software and services for cancer screening.
The company said that VMS Deutschland Holdings GmbH, a Varian affiliate, would make a voluntary public tender offer to all MeVis shareholders to acquire their non-par value registered shares at a price of €17.50 per share, for an expected total payment of €30 million if all outstanding shares are tendered.
MeVis develops innovative software for the analysis and processing of image data which is marketed to imaging equipment manufacturers for screening breast cancer as well as lung, liver, prostate, and colon cancer.
The acquisition would also include the proprietary MeVisLab software platform, a research and development environment facilitating the efficient realization of tailored software solutions using a rapid prototyping approach. MeVis software for breast cancer screening has been sold to some 10,000 clinics around the world.
Following the acquisition, the MeVis team would continue to develop cancer screening and image processing applications at its current facility in Bremen, where it would operate as a center of excellence within Varian's Imaging Components business, which is headquartered in Salt Lake City, Utah.
Varian's offer reflects an approximately 16 percent premium over MeVis' average share price over the past six months. The offer will be contingent on a minimum acceptance rate of 75 percent of the MeVis shares outstanding. A number of major shareholders have committed to accepting the offer, representing over 70 percent of the MeVis shares outstanding.
Varian plans to file its tender document according to German law in mid-January 2015, and formally launch the tender offer after approval of the tender document by the German Financial Supervisory Authority. The acquisition is expected to be completed in April 2015.
While the financial impact of the transaction is not expected to be material to Varian's revenues and earnings in fiscal year 2015, Varian will provide financial details upon closing of the transaction.
Copyright RTT News/dpa-AFX