Radiation therapy firm Varian Medical Systems has announced that it is spinning off its Imaging Components business into an independent publicly traded company that will focus on components for x-ray systems.
Varian announced the move on May 23, stating that a spin-off would enable the parent company to focus on its cancer treatment business. The spin-off would be accomplished through a tax-free distribution to Varian stockholders, and it is expected to be completed by the end of calendar 2016.
Varian's Imaging Components division makes x-ray tubes, flat-panel digital radiography (DR) detectors, connectors, and accessories. It also supplies workstations and software for computer-aided detection (CAD) and image processing, the company reported.
As a standalone company, the Imaging Components business will have yearly sales of around $575 million and about 1,300 employees globally. It is expected that the new company's executive team will be led by Sunny Sanyal, president of Varian Imaging Components, as CEO, and Varian controller Clarence Verhoef will be chief financial officer.
Varian has a successful history of spin-offs, and itself is the product of a 1999 move that split Varian Associates into three companies: Varian Medical Systems, Varian Semiconductor Equipment Associates, and Varian Inc. The latter two companies subsequently were acquired, while Varian Medical Systems has grown from less than $600 million in annual sales to over $3 billion.
Following the spin-off, Varian Medical Systems will have $2.5 billion in annual revenues and 6,000 employees worldwide.
