Varian Medical Systems has unveiled plans to spin off its imaging components business as a new and stand-alone public company.
The spin off will be carried out through a tax-free distribution to Varian stockholders in a transaction expected to be completed by the end of this year.
Varian’s imaging components business manufactures X-ray tubes, flat panel detectors, connectors and accessories for imaging.
The business also supplies workstations and software for computer-aided diagnostics and image processing.
The new imaging company will provide components, software and engineering services for imaging equipment manufacturers and system integrators in the medical diagnostics, dentistry, veterinary care, security and industrial inspection industries.
With around 1,300 employees, the new imaging components company is expected to generate annual revenues of around $575m.
Varian imaging components current president Sunny Sanyal will serve as the CEO for new imaging components company, while Clarence Verhoef will act as CFO.
Varian Medical Systems CEO Dow Wilson said: "The objectives and growth strategies of our imaging components and oncology businesses are now taking them in different directions.
"We believe making these businesses independent will give each of them more freedom to invest in and pursue new growth strategies in their unique core markets."
Varian Medical Systems offers medical devices and software for treating cancer and other medical conditions with radiation.
Image: Varian Medical Systems’ corporate headquarters. Photo: courtesy of Varian Medical Systems, Inc.