Zacks_Analysts' Blog : Varian Acquired by Agilent - Analyst Blog

Varian Medical Systems, Inc. (VAR) was recently acquired by Agilent Technologies, Inc. (A) in an all-cash transaction worth $1.5 billion.

The deal excludes Varian’s Australia-based inductively coupled plasma mass spectrometry instruments business, its Netherlands-based laboratory gas chromatography instruments business and its California-based gas chromatography triple-quadrupole mass spectrometry instruments business. These businesses will be acquired by Bruker Corp. (BRKR), which Agilent has committed to divest. 



While a majority of Varian’s product lines will be integrated into Agilent’s Chemical Analysis Group (CAG), a few will be integrated within Agilent’s Life Sciences Group (LSG).

Headquartered in Palo Alto, California, Varian is the world’s leading manufacturer of integrated radiotherapy systems for treating cancer and a premier supplier of X-ray tubes for diagnostic imaging applications.

Varian reported second quarter fiscal 2010 earnings per share of 73 cents, beating the Zacks Consensus Estimate of 68 cents and the year-ago earnings of 54 cents. Total revenues in the second quarter increased 6% year over year to $586 million. Excluding a favorable foreign currency translation, net sales increased 3% year over year.


 


Varian reported strong net orders and backlog in the second quarter. Net orders increased 13% year over year to $593 million. Total backlog at the end of the quarter was $2 billion, up 6% year over year.