German Siemens Healthineers has agreed to acquire the American company Varian Medical Systems for $ 16.4 billion. The merger will create the largest player in the global market for solutions for the treatment of cancer, writes Reuters.

The deal will be the largest for Healthineers following the 2018 spin-off from Siemens. Varian’s bridging funding will be provided by Siemens, which retains control of Healthineers. Under the terms of the deal, Healthineers is buying back all Varian shares at $ 177.5 each, which is 24% more than the company’s stock price.

Varian is a leader in radiation therapy for malignant neoplasms, with approximately 50% of the global market.