Agilent to spin off electronic measurement business
Sept 19 (Reuters) - Agilent Technologies Inc said it will spin off its electronic measurement businesses into a public company by the end of next year, leaving Agilent to focus on its healthcare business.
Shares of Agilent, carved out of Hewlett-Packard Co in 1999, rose nearly 12 percent in premarket trading.
The yet unnamed electronic measurement (EM) company will provide electronic test and measurement technology to communications, aerospace and defense, and industrial markets.
Agilent Chief Operating Officer Ron Nersesian is the CEO-designate of EM company, which is estimated to record revenue of about $2.9 billion in fiscal 2013.
Agilent shareholders will receive a pro rata distribution in the EM company.
Agilent will retain its life sciences, diagnostics and applied markets businesses. Chief Executive William Sullivan will continue to lead the company, which expect full-year revenue of about $3.9 billion.
The spin-off is not likely to impact the company's full-year forecast, but it is expected to incur one-time charges related to the transaction, Agilent said in a statement.
The Santa Clara, California-based testing equipment maker's products are used by pharmaceutical and biotechnology companies, life sciences research institutions and aerospace and defense sectors.
Agilent shares, which have gained about 20 percent this year, had closed at $49.32 on the New York Stock Exchange on Wednesday.
(Reporting by Esha Dey in Bangalore; Editing by Joyjeet Das)