PALO ALTO, Calif. — Varian Medical Systems Inc. said Monday it has agreed to buy privately held Zmed Inc., a supplier of radiation oncology software, for about $35.5 million in cash, subject to certain adjustments.
Zmed and its approximately 30 employees will continue to operate from the company's headquarters in Ashland, Mass.
Palo Alto-based Varian, which makes cancer therapy systems, said the deal is expected to close by the middle of November and will allow it to add 3D ultrasound imaging capabilities.
The company expects the acquisition to add revenue of $16 million to $18 million in the first year and be neutral to slightly accretive to earnings.
For the fiscal year ended Sept. 27, 2002, Varian Medical had sales of $873.1 million.
Shares of the Palo Alto-based company closed Monday at $56.69, down 46 cents, or 0.8 percent, on the New York Stock Exchange.