Varian Medical Systems, of Palo Alto, Calif., has entered into a three-year, $320 million contract to supply medical imaging subcomponents to Toshiba.

The technology will be integrated into diagnostic imaging equipment for the global market, according to Varian.

Orders will be booked over the period of the agreement.

"This contract marks the latest chapter in our 30-year relationship with Toshiba Medical Systems," said Robert Kluge, corporate senior vice president at Varian. "Over the years, our two companies have developed a close cooperation at all levels of the business. We have complementary design engineering and manufacturing capabilities, and work together well to realize new products and improve existing ones."