NEW YORK (AP) -- Scientific instrument maker Agilent Technologies said Monday it will buy Varian Inc. for $1.5 billion in cash, or $52 per share.
Agilent is paying a premium of 33 percent to Friday's $39.20 closing price for Varian. Varian, of Palo Alto, Calif., reported $1.01 billion in revenue in fiscal 2008. Scientific instruments accounted for $838.7 million in sales and the remainder came from from vacuum technologies.
The boards of both companies approved the deal, which is expected to close by the end of the year pending approval from shareholders and regulators.
Santa Clara, Calif.-based Agilent said the acquisition gives it more products in the life sciences, environmental and materials businesses, and believes the deal will add to its profits in 2010.
Agilent estimates $75 million in cost savings from the combination.