Sirtex Medical enters agreement for $1.58 billion takeover from Varian Medical

Company News

by Kathy Skantzos

Medical device company Sirtex Medical (ASX:SRX) has announced it has entered into an agreement with US medical giant Varian Medical Systems which has offered to takeover the company for $1.58 billion.

Varian Medical Systems is offering $28.00 a share in the cash takeover, a 49 per cent premium to the $18.83 price that Sirtex shares last traded at before a trading halt on Monday 29 January 2018.

The board needs approval from shareholders and says it recommends shareholders vote in favour of the takeover at a meeting to be held in May 2018.

Sirtex revealed it received a number of acquisition proposals late last year.

The Californian-based New York Stock Exchange-listed medical company is a developer of cancer products and has a market capitalisation of US$11.8 billion.

Shares in Sirtex Medical (ASX:SRX) last traded at $18.83 on Monday.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.