Varian plans $250m share buy-back
This article was originally published in Clinica
Radiotherapy specialist Varian Medical Systems is to repurchase $250m of its common stock under an accelerated share buy-back programme. The transaction will be funded primarily through the firm's revolving credit facility with Bank of America, which it has amended to increase borrowing capacity from $225m to $300m. Varian will receive approximately 3.8 million shares, or 85% of the shares to be repurchased based on its closing share price on 24 August ($55.20). The stock buy-back is Varian's second this year – it also repurchased $280m in shares in February (www.clinica.co.uk, 2 March 2011). The company recently reported third-quarter revenue growth of 12%, to $649.4m, driven by continued demand for newer products in its oncology systems and X-ray products units (www.clinica.co.uk, 28 July 2011). Net income was also up, at $98.6m, compared with $85.5m during last year's Q3. As of the end of the third quarter of fiscal year 2011, Varian had 119.1 million fully diluted shares outstanding.