Agilent, a test and measurement equipment manufacturer based in Santa Clara, Calif., said in a statement Monday (July 27, 2009) that it will pay $52 per share for the common shares of Varian, representing about a third more to Varian's stock closing price on July 24.

The acquisition gives Agilent an opportunity to expand products into the life sciences, environmental and energy and materials, areas where Varian has built up huge expertise over the years and that are now beginning to show increased growth.

The addition of the Varian businesses in these areas would complement Agilent's offerings in atomic and molecular spectroscopy and in imaging and vacuum technologies, the company said.

"This acquisition is a major step in Agilent's transformation into a leading bio-analytical measurement company," said Bill Sullivan, Agilent's president and CEO in a statement. "While we continue to be a world leader in electronic measurement, our biggest opportunities for future growth are in bio-analytical measurement."

Agilent said the transaction would help reduce costs by up to $75 million and "achieve Agilent's 20 percent return on invested capital target within four to five years," the company said.