Varian, Inc. Acquires Digilab Spectroscopy Products for Life Sciences and Materials Research

16-Sep-2004

Varian, Inc. announced that it has acquired certain molecular spectroscopy assets of Digilab, LLC for $14 million in cash, subject to certain net asset adjustments. The transaction also includes an opportunity for an additional purchase price payment if the acquired product lines reach specific financial performance targets during the next 12 months. The acquisition expands the Company's product range of information rich detectors and spectrometers for life science and industrial materials research applications. Varian, Inc. expects the acquisition of these Digilab product lines to generate at least $15 million of revenue in year one, and to be slightly dilutive to earnings for the first six months and accretive thereafter.

The acquired product lines include Fourier Transform infrared (FT-IR) spectroscopy instruments, FT-IR imaging microscopes, near infrared (NIR) spectroscopy instruments, and Raman spectroscopy instruments. FT-IR and Raman spectroscopy products have broad application in pharmaceutical and biotechnology research as well as industrial materials research.

This acquisition is part of Varian, Inc.'s strategy to strengthen the Company's product portfolio with internal research and development efforts and strategic acquisitions of complementary products and technologies.

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