Varian to acquire Cancer Treatment Services for $283M
Varian Medical Systems announced it has entered into a definitive agreement to acquire Cancer Treatment Services International for $283M. Privately held, CTSI operates the American Oncology Institute in Hyderabad and 10 multidisciplinary-radiation, medical and surgical oncology- cancer centers across the Indian subcontinent as well as a U.S.-based Oncology Solutions division that provides cancer care professional services to healthcare providers worldwide. Varian will finance the acquisition with a combination of borrowings under its credit facility and cash on hand. The transaction is anticipated to close in approximately two weeks, subject to the satisfaction of customary closing conditions. CTSI generated annual revenues of $43.5M in the fiscal year ended March 31, 2019. Varian estimates the transaction will have a 6c per share dilutive impact to earnings on a GAAP basis and a 3c per share dilutive impact to earnings on a Non-GAAP basis for the remainder of fiscal year 2019. The company expects this acquisition to be accretive to earnings per share during fiscal year 2021 on a Non-GAAP basis and fiscal year 2022 on a GAAP basis.