Agilent to acquire rival Varian for $1.5 billion

Agilent Technologies Inc, the world's premier analytical measurement company is set to buy Varian Inc., a leading worldwide supplier of scientific instrumentation for life science and applied market applications, for around $1.5 billion in an all-cash deal.

Both the companies have signed a definitive agreement yesterday by which Agilent will pay $52 cash per share of Varian's common stock, which represents approximately 35 per cent premium to the Friday's closing price on Nasdaq.

Agilent's and Varian's board of directors have respectively approved the deal.

Through the acquisition, Agilent aims to expand its applications and offerings in the fields of life sciences, environment, energy and materials apart from enlarging its product portfolio into atomic and molecular spectroscopy, nuclear magnetic resonance, imaging and vacuum technologies.

Varian is a leading worldwide supplier of scientific instruments and vacuum technologies and a provider of complete solutions through its global distribution and support systems. The company has manufacturing facilities in North America, Europe and Asia Pacific, and registered a turnover of $1 billon in 2008.

It reported an 18-per cent increase in profit at $13.5 million for the third quarter which ended on 3 July, 2009, compared to last year. However, revenues dropped to $197 million, a drop of about 20 per cent over 2008.