Scientific instrument maker Agilent Technologies says it will buy Varian Inc. for $1.5 billion in cash, or $52 per share.
Agilent is paying a premium of 33 per cent to Friday's $39.20 closing price for Varian, which makes scientific instruments and vacuum products. 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, California-based Agilent Technologies Inc. says 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.