Varian Drops Its Plan to Purchase Impac

Varian Medical Systems Inc. said it will abandon its planned $135-million purchase of Impac Medical Systems Inc. after the Justice Department said the acquisition would stifle competition for cancer-treatment technology. Palo Alto-based Varian, the world’s biggest maker of radiation machines for cancer treatment, controls 60% of the market. It said it will take a $2-million charge in the first quarter next year to cover the costs of its failed bid for Impac, a closely held medical software developer. The Justice Department had said it would sue to block Varian’s bid for Mountain View, Calif.-based Impac because the combination would make Varian the dominant seller of software used to manage so-called linear accelerators and handle related administrative functions. Varian shares fell $2.88 to close at $51.56 on the New York Stock Exchange. It announced its decision to abandon the deal after the close of markets.