Varian Medical Systems has agreed to buy Cancer Treatment Services International for $283 million, which includes the Pittsburgh area-based Oncology Solutions division that provides cancer care professional services to health care providers worldwide. CTSI also operates the American Oncology Institute in Hyderabad, India, and 10 multidisciplinary — radiation, medical and surgical oncology — cancer centers across the Indian subcontinent.
The deal allows Palo Alto, Calif.-based Varian to expand its offerings while helping to support the continued growth trajectory of the company’s oncology systems business.
CTSI, which still has its corporate headquarters in Pittsburgh, had $43.5 million in annual revenue for the fiscal year that ended March 31, 2019. The provider is being sold by the PE firm TPG, which paid a reported $33 million for a 65 percent stake in CTSI in 2016 through its TPG Growth platform.
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.
“Effectively addressing the growing global cancer burden requires not just new technology and research, but also new ways of collaborating and partnering,” CTSI co-founder and chairman of UPMC Hillman Cancer Center Dr. Stanley M. Marks, said, in a statement. “This acquisition should now expand the development and implementation of new solutions for cancer care around the world.”