Agilent Tech buys Varian

       Agilent Technologies Inc, which makes electronic testing equipment, said it would buy Varian Inc for $1.5 billion in cash to bolster its fast-growing bioanalytical measurement business. Varian specialises in instruments to measure biological and physical properties.
       Agilent said it would pay $52 a share,which is a 35% premium to Varian's closing share price on Friday. The boards of both sides have approved the deal,the companies said on Monday.
       Analysts said Agilent has long wanted to expand its bioanalytical measurement business, which accounted for about 46% of revenue in the second quarter.The segment has a higher profit margin and is a more stable business than the increasingly commoditised electronic measurement business that now accounts for more than half of Agilent's revenue.
       The acquisition of Varian will bump bioanalytical measurement to about 55%of Agilent's revenue and there is room for cost cuts to boost profit growth."These two factors justify the price,"analysts said.
       The company expects regulators to approve the deal before the end of the year. Once completed, the transaction would likely result in $75 million in annual savings, it said.
       Agilent competes with PerkinElmer Inc, Thermo Fisher Scientific Inc, Waters Corp, and Life Technologies Corp in the bioanalytical business.
       "Varian can help Agilent expand product offerings in the life sciences, environmental, energy and materials sectors,and help it enter new markets, including nuclear magnetic resonance imaging and atomic and molecular spectroscopy.
       "While we continue to be a world leader in electronic measurement, our biggest opportunities for future growth are in bioanalytical measurement,"Agilent chief executive Bill Sullivan said in a statement.