Radiation oncology treatments and software maker Varian Medical Systems has separated its imaging components business into a new independent company.
The business is now established as Varex Imaging Corporation.
Under the deal, Varian stockholders have secured 0.4 shares of Varex for every one share they hold, which is intended to be tax-free for US federal income tax purposes.
Varian has received a $200m cash payment from Varex, in relation with the separation.
Varex will engage in the manufacturing of X-ray tubes, flat panel detectors and high-voltage connectors.
The company will also supply imaging software and specialized accelerators for high-energy x-ray imaging. Its components can be used in medical imaging, as well as industrial and security imaging applications.
With around 1,400 employees, the new imaging components company operates manufacturing and service center sites in North America, Europe, and Asia.
Varian Medical Systems CEO Dow Wilson said: "We are very pleased that we were able to complete this successful separation and create two strong independent companies.
"Varian is now focused exclusively on expanding its position as the leader in systems and software for the treatment of cancer.
“As a cancer-fighting company we are increasing our efforts to make the treatment of cancer more effective, affordable and accessible for patients around the world."
Last December, Varian agreed to acquire PerkinElmer’s medical imaging business for around $276m.
PerkinElmer's medical imaging business supplies digital flat panel X-ray detectors, which can be used as components for industrial, medical, dental and veterinary X-ray imaging systems.
Based in Palo Alto of California, Varian Medical Systems manufactures medical devices and software for treating and managing cancer.
Image: Varian Medical Systems' corporate headquarters. Photo: courtesy of Varian Medical Systems, Inc.