Bayer to Sell Diagnostics Division to Siemens for $5.3 Billion

However, the systems business of the Diagnostics Division, with its emphasis on hardware, information technology (IT) networking, and laboratory equipment, is subject to different success factors, according to Bayer, and therefore will be included in the sale.

"Bayer Healthcare Diagnostics has grown considerably faster than the market in terms of earnings and profitability over the past three years,” said Arthur Higgins, chairman of the board of management of Bayer HealthCare AG. "So now is the right time to divest this successful business and thereby add value for the Bayer Group. Siemens is the ideal company to continue developing Bayer HealthCare Diagnostics as a core business.”

"With this acquisition we are continuing to consistently pursue our strategy of building the industry's first integrated diagnostics company that combines diagnostic imaging, laboratory diagnostics, and clinical information technology under one roof right along the value chain,” observed Erich Reinhardt, CEO and president of Siemens Medical Solutions.

The transaction will also help Bayer to reduce some of the debt incurred for the financing and acquisition of Schering.



Related Links:
Siemens AG
Bayer AG