PALO ALTO, Calif., Feb. 28, 2011 /PRNewswire/ — Varian Medical
Systems, Inc. (NYSE:
VAR) today announced that it has entered into a new agreement
with Bank of America N.A. to repurchase $280 million of its common
stock under an accelerated share repurchase program.
Under the accelerated repurchase agreement, Varian will pay $280
million to Bank of America N.A. and receive approximately 3.5
million shares, or 85% of the shares to be repurchased based on the
closing share price of the company’s common stock on February 23,
2011. The total number of shares ultimately repurchased under
the agreement will be determined upon final settlement.
Varian will either receive additional shares of common stock
or under certain circumstances be required to remit a settlement
amount payable at Varian’s option in cash or common stock, based
generally on the volume weighted average share price of Varian’s
common stock during the next two to six months.
“Given the success of Varian’s first accelerated repurchase
program and the ongoing strength of Varian’s balance sheet in a low
interest rate environment, we have another opportunity to return
stockholder value through a second accelerated repurchase program,”
said Tim Guertin, president and CEO of Varian Medical Systems.
The shares of common stock will be acquired under the remainder
of the 8 million share repurchase authorization approved by the
company’s Board of Directors on August 6, 2010 (which expires at
the end of the Company’s fiscal year 2011), and, if necessary, the
12 million share repurchase authorization approved by the Company’s
Board of Directors on February 11, 2011 (which expires at the end
of the Company’s fiscal year 2012). Shares purchased under
the accelerated share repurchase program will be retired.
The repurchase will be financed partially from cash on hand and