Varian Medical Systems announced an agreement to acquire the Medical Imaging business of PerkinElmer as an addition to the Varian Imaging Components business, which is slated to become an independent public company, Varex Imaging, through a previously announced separation expected to be completed in January 2017.

The acquisition is expected to close after the planned separation of Varex from Varian and following receipt of required regulatory approvals.

Varex will pay $276 million to acquire PerkinElmer’s Medical Imaging business, which is a supplier of digital flat panel X-ray detectors that serve as components for industrial, medical, dental and veterinary X-ray imaging systems.

Varex plans to finance the acquisition through an expansion of its bank credit facilities to approximately $600 million. According to a related 8-K filing, Bank of America served as a lender, swing line lender, L/C issuer and administrative agent on the existing facilities.

Varex is expected to transfer approximately $200 million in cash to Varian as part of the separation.

“This is a natural fit for our Varex business with complementary digital imaging products that will serve to accelerate our profitable growth with more than $140 million in new revenue,” said Sunny Sanyal, current president of Varian’s Imaging Components business who is expected to become CEO of Varex. “This acquisition would add new digital imaging technology to our portfolio that would enable us to offer customers a broader range of imaging solutions and provide us with additional cross-selling opportunities. This would also expand our footprint in the industrial imaging sector. Furthermore, on a combined basis, this acquisition would give us the ability to strengthen our manufacturing productivity.”