PALO ALTO, CA -- Agilent Technologies has agreed to divest its Semiconductor Products segment to Kohlberg Kravis Roberts & Co. and Silver Lake Partners for $2.66 billion. The company also plans to spin off its SOC and Memory Test businesses as soon as practical in 2006.

Agilent will return the cash proceeds of the divestitures to its owners through a $4 billion share repurchase program to commence immediately. The company also intends to call its $1.15 billion convertible debenture, which potentially will reduce its outstanding shares by 36 million.

Bill Sullivan, president and CEO, said, “These actions enable Agilent to focus exclusively on realizing its full potential as the world’s premier measurement company … It has become increasingly clear that investors also prefer this exclusive focus on the $40 billion measurement market. Returning the proceeds of these divestitures via share repurchases demonstrates Agilent’s commitment to realizing superior value for our owners as well as our customers.”

The company expects to complete the transactions by the end of its fiscal year, Oct. 31, 2005.

As part of its repositioning as a measurement company, Agilent expects to reduce its global infrastructure costs by $450 million, and infrastructure-related employment by about 1,300 jobs. This reduction will be accomplished through a combination of employee transfers to the divestiture and spin-off, attrition and work force reduction.

• Prev
• Next