Varian (VAR) announced that it has entered into a definitive agreement to combine with Siemens Healthineers (SMMNY) in an all-cash transaction valued at $16.4 billion on a fully diluted basis.

Under the terms of the agreement, which has been unanimously approved by Varian's board, Siemens Healthineers will acquire all outstanding shares of Varian for $177.50 per share in cash, representing a premium of 24% to the closing price of Varian's common stock on July 31. The transaction is expected to close in the first half of 2021, subject to approval by Varian shareholders, receipt of regulatory approvals, and other customary closing conditions.

"The combination will create a multi-disciplinary global healthcare leader with the most comprehensive cancer care portfolio in the industry. The combined company will offer an integrated platform of end-to-end oncology solutions to address the entire continuum of cancer care, from screening and diagnosis to care delivery and post-treatment survivorship.

"By bringing together the highly complementary diagnostic tools, imaging, radiotherapy and AI capabilities across both companies, Varian and Siemens Healthineers will lead the digital transformation of oncology healthcare, enabling more efficient diagnosis, increased treatment quality and access, personalized precision cancer care, and improved outcomes for millions of patients worldwide,"

Varian said in a statement.