Mumbai/San Francisco: TPG Growth, the middle market and growth equity platform of alternative asset firm TPG, has signed a definitive agreement to sell Cancer Treatment Services International (CTSI) to Varian Medical Systems (NYSE: VAR) for $283 million.
CTSI is part of Asia Healthcare Holdings (AHH), a healthcare operating platform founded by TPG Growth. Headquartered in Palo Alto, California, Varian is a leader in developing and delivering cancer care solutions and is focused on creating a world without fear of cancer and employs approximately 7,000 people around the world.
CTSI owns and operates an expanding network of cancer treatment facilities across India and South Asia, including several brands such as the American Oncology Institute. CTSI’s flagship network comprised of multi-disciplinary radiation, medical, and surgical oncology focused cancer hospitals across South Asia;US-based CTSI Oncology Solutions, which provides cancer treatment planning services to healthcare providers worldwide and AmPath, an integrated reference laboratory and pathology services provider in India. CTSI employs more than 1,500 people across its operations in India and the US,and fulfills a significant patient demand in the region for quality cancer treatment protocols.
“We invested in CTSI in 2016 with the belief that the company was in a strong position to address a substantial and growing need for quality cancer care in India. Today, CTSI is one of the largest and leading providers of high-quality oncology services across the country and broader South Asia,” said Matthew Hobart, Partner at TPG Growth.
Varian said this transaction will accelerate identification of unmet clinical and operational needs to facilitate advances in technology and services. As a result, the combined companies will be positioned to create new multidisciplinary solutions based on robust clinical information benefiting oncologists, and ultimately resulting in better care for patients. These fast-growing offerings will allow Varian to expand its solutions, while helping to support the continued growth trajectory of the company's oncology systems business.
"At Varian, the patient and clinician are at the center of our thinking as we evolve into a broad-based cancer care solutions company," said Dow Wilson, president and chief executive officer of Varian. "Our acquisition of CTSI is consistent with this strategy and will allow us to better support oncology centers globally, accelerate access to technology-driven care and build a feedback loop that will drive cost-effective innovation. We look forward to pooling the ingenuity of our combined team with the power of data, technology and clinical insights to achieve new victories against cancer, especially for the millions of patients globally without access to appropriate care."
Varian said it will finance the acquisition with a combination of borrowings under its credit facility and cash on hand. The transaction is anticipated to close in approximately two weeks, subject to the satisfaction of customary closing conditions.