Agilent buys Varian for $1.5billion

The purchase will expand Agilent's offerings in life sciences, environmental, energy and materials as well as strengthen its presence in atomic and molecular spectroscopy. Once the acquisition has been completed, Agilent's executive vice president and chief financial officer, Adrian Dillon, will assume responsibility for combining Varian with Agilent's bioanalytical measurement segment consistent with Agilent's operation model. Agilent's president and chief executive officer, Bill Sullivan (pictured), said: "This acquisition is a major step in Agilent's transformation into a leading bioanalytical measurement company. While we continue to be a world leader in electronic measurement, our biggest opportunities for future growth are in bioanalytical 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 bioanalytica 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 uniques new products and markets." Gary Rogerson, chairman and chief executive officer of Varian, added: "After thorough review together with our independent advisors, our board of directors determined that this transaction delivers excellent value for our shareholders. 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 complimentary 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." Agilent expects the transaction to generate $75million in annual costs and achieve Agilent's 20% return on invested capital target within four to five years.