Agilent Technologies to acquire Varian, for $1.5 billion
29 July 2009
Agilent Technologies Inc. (NYSE:A) and Varian, Inc. (NasdaqGS:VARI)
have announced that they have signed a definitive agreement for the
acquisition by Agilent of Varian, a supplier of scientific
instrumentation and associated consumables for life science and applied
Agilent will pay $52 cash per share of common stock for Varian in a
transaction that represents a premium of approximately 35% to Varian’s
closing price on July 24, 2009. Both Agilent’s and Varian’s Board of
Directors have unanimously approved the all-cash offer.
The acquisition broadens Agilent’s applications and solutions
offerings in life sciences, environmental, and energy and materials. It
also expands Agilent’s product portfolio into atomic and molecular
spectroscopy; establishes a leading position in NMR, imaging and vacuum
technologies; and strengthens its consumables portfolio.
“This acquisition is a major step in Agilent’s transformation into a
leading bio-analytical measurement company,” said Bill Sullivan,
Agilent’s president and chief executive officer. “While we continue to
be a world leader in electronic measurement, our biggest opportunities
for future growth are in bio-analytical measurement.”
“For more than 60 years, Varian has built rich talent, technology,
products and relationships in this area. The combination of Varian with
Agilent’s bio-analytical measurement business will result in the
broadest product offering in the industry. The acquisition will
establish Agilent as a clear market leader in analytical solutions and
give us the talent and technology base for creating unique new products
and markets,” added Sullivan.
“After thorough review together with our independent advisors, our
Board of Directors determined that this transaction delivers excellent
value for our shareholders,” said Garry Rogerson, chairman and chief
executive officer of Varian, Inc. “We also anticipate that the
combination will yield strong benefits for our customers and employees.
"Like Agilent, Varian has a long history as a technology leader. We
each bring expertise and experience across a different but complementary
set of markets and applications. For instance, while Agilent is a leader
in food safety, Varian is well established in the energy industry, and
has a broad spectrum of products for environmental analysis. Together,
the combined company will be able to provide customers with the most
comprehensive set of solutions across a wider range of industries.”
Once the acquisition has been completed, Adrian Dillon, Agilent’s
executive vice president and chief financial officer, will assume
responsibility for combining Varian with Agilent’s Bio-Analytical
Measurement segment consistent with Agilent’s operating model. “We have
the opportunity to create significant value for Agilent shareholders by
leveraging the combined entity’s infrastructure and global supply
chain,” said Dillon.
The transaction is subject to approval by the shareholders of Varian
and will be completed after achieving customary closing conditions and
regulatory approvals, which Agilent expects before calendar year-end.
The transaction is not subject to any financing conditions.
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