Varian Medical Buys InfiMed

Varian Medical Systems Inc. will buy privately held InfiMed Inc., a supplier of workstations including hardware and software for processing diagnostic X-ray images.

The acquisition, which is expected to close in early April and subject to the satisfaction of certain closing conditions, will operate within Varian’s X-ray Products group. The agreement provides that Varian will pay approximately $15 million for InfiMed plus earnouts based on sales of InfiMed products achieved over the next 24 months. Varian expects that the acquisition will be about neutral to earnings per diluted share in fiscal 2012.

“The addition of InfiMed will enable Varian to better serve its X-ray customers as a one-stop shop for x-ray tubes, flat panel image detectors, and workstations, said Robert Kluge, president of Varian’s X-ray business. “InfiMed’s products and know-how will enable us to provide more fully integrated X-ray component solutions to our customers. This could provide our customers with easier more seamless integration of Varian components into their systems and help users achieve improved performance in their imaging systems. We also hope to enable equipment developers to reduce time to market and access niche markets that might otherwise be out of reach.”

Founded in 1983, InfiMed generates approxiamtely $15 million in annual revenues by developing and supplying X-ray equipment manufacturers around the globe with specialized software and hardware for medical imaging applications, including radiography and fluoroscopy, digital radiography, cardiology and angiography. The company has about 60 employees working in facilities near Syracuse, N.Y.

Based in Palo Alto, Calif., Varian Medical manufactures medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, and brachytherapy. The company employs nearly 6,000 people at manufacturing sites in North America, Europe and China and approximately 70 global sales and support offices.