Germany: Siemens Heathineers raises €2.3bn for Varian acquisition

Bernd Montag, chief executive officer, Siemens Healthineers

Germany’s Siemens Heathineers has raised €2.3bn (US$2.7bn) in a share placement to help fund its acquisition of US cancer care specialist Varian.

It sold 53 million shares at €44.10 per share. This was a 4.9% discount to the previous close.

“With this share placement, we successfully completed the equity-related part of the Varian financing and implemented the financing structure as originally announced,” said chief financial officer Jochen Schmitz.

In August last year, Siemens Healthineers agreed to acquire Varian for US$16.4bn or around US$177.50 per share in cash.

The acquisition is expected to close in the first half of the year.

As a first step, Siemens Healthineers raised €2.7bn in September last year. Then, in March, Siemens Finance provided Siemens Healthineers with a US$10bn bridge facility. This second capital increase completes the equity-related part of the Varian financing.

“The planned acquisition of Varian is the largest takeover in our history. Thanks to the two successful equity raises we managed to optimise the financing mix for us, allowing us to retain a very solid balance sheet and net leverage level following the acquisition,” added Schmitz.