Agilent Technologies Inc. has announced plans to separate into two publicly traded companies: one in life sciences, diagnostics and applied markets (LDA) that will retain the Agilent name, and the other that will be comprised of Agilent's current portfolio of electronic measurement (EM) products. The separation is expected to occur through a tax-free pro rata spinoff of the EM company to Agilent shareholders.
The new Electronic Measurement company will be the world's premier electronic measurement company, with a leading position in major markets including communications; aerospace and defense; and industrial, computers and semiconductors. FY13 estimated revenues are $2.9 billion. The EM company initially is not expected to pay a dividend.
Ron Nersesian, who has been Agilent's president and chief operating officer, is executive vice president of Agilent and president and CEO-designate of the new EM company, effective immediately. Neil Dougherty, who has been Agilent's vice president and treasurer, is vice president of Agilent and CFO-designate of the new EM company.
The separation will allow each division to focus on their very distinct businesses. According to Agilent, the LDA Company will be able to devote resources to the higher-growth LDA business, while reducing exposure to the more cyclical Electronic Measurement industry and the Electronic Measurement company will be able to devote resources to its own growth that were previously used to capitalize LDA.
The spinoff is not anticipated to impact Agilent's guidance for fiscal year 2013 and expected to complete some time in 2014.
