Agilent Technologies Inc. Purchases Varian Inc.

July 28, 2009

Agilent Technologies Inc. (Santa Clara, California) has agreed to purchase Varian, Inc. (Palo Alto, California) for $1.5 billion or $52 per share.

Agilent Technologies Inc. (Santa Clara, California) has agreed to purchase Varian, Inc. (Palo Alto, California) for $1.5 billion or $52 per share. According to Agilent, the acquisition broadens its' applications and solutions offerings in life sciences, environmental, and energy and materials. It also expands the company’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.

The transaction is expected to generate $75 million in annual cost synergies and achieve Agilent’s 20% return on invested capital (ROIC) target within four to five years. 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.

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