Varian Medical Systems moves to expand radiotherapy line

Varian Medical Systems Inc. is looking to grow again with the proposed acquisition of Zmed Inc. for $35.5 million.

The Ashland, Mass.-based company is a privately-held supplier of radiation oncology software and accessories for ultrasound-based, image-guided radiotherapy (IGRT), stereotactic radiation treatments, and image management.

 Varian Medical Systems Chairman Richard Levy said the addition of Zmed would add 3D ultrasound imaging capabilities to Varian's image-guided radiotherapy products and make it "possible for Varian to offer radiation oncology departments a new line of stereotactic positioning accessories and planning software for treating patients with ultra-precise, hypofractionated radiotherapy or radiosurgery."

Zmed also would add annual revenues of $16 million to $18 million to Varian Medical Systems' coffers. The companies expect the deal to close some time in November.

Zmed's product line - which would join Varian's Oncology Systems' business -- includes servers and software for storing, accessing, transferring and reviewing patients' images through local networks and the Internet. Levy said the technology -- installed in more than 110 sites -- would be a boon for Varian Medical Systems' VARiS Vision software product.

Zmed has approximately 30 employees and would continue to operate from its Ashland location.

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