Agilent Technologies to split into two publicly traded companies
20 Sep 2013
Agilent Technologies, the scientific-testing equipment company that was spun off from Hewlett-Packard in 1999, plans to split into two publicly traded companies.
One company will focus on life sciences, diagnostics and applied markets and will retain the Agilent name, while the other will comprise Agilent's current portfolio of electronic measurement (EM) products.
The separation is expected to occur through a tax-free pro rata spinoff of the EM company to Agilent shareholders.
"Agilent has evolved into two distinct investment and business opportunities, and we are creating two separate and strategically focused enterprises to allow each to maximise its growth and success," said William Sullivan, president and CEO of California-based Agilent.
"Agilent's history is one of reinvention, starting with our own separation from HP and including four major spinoffs since 2005. We are once again making a bold move, as we have done many times in the past, to ensure a future of sustainable growth for both the LDA and EM companies," he added.
Agilent said that the new Agilent will be a leader in life sciences, diagnostics and applied markets, with an attractive recurring revenue base, balanced geographic revenue profile, growth opportunities in emerging markets, molecular diagnostics and clinical markets, and significant margin-expansion opportunities.
It expects to generate revenues of $3.9 billion in FY13 and Sullivan will be its president and CEO while Didier Hirsch continues as CFO.
The new EM company will be electronic measurement company, with a leading position in major markets including communications, aerospace and defense, and industrial, computers and semiconductors.
The EM company is expected to generate revenues of 2.9 billion in FY13 and Ron Nersesian, Agilent's president and COO, will be president and CEO-designate of the new EM company.
