Summary
Agilent Technologies, Inc. announced a significant divestiture on February 10, 2010, entering into an Asset Purchase Agreement with JDS Uniphase Corporation (JDSU). This agreement involves the sale of substantially all assets related to Agilent's Network Protocol Test Products, Wireless Drive Test Systems, and Network Service Assurance and Test Systems businesses to JDSU for $165 million in cash, subject to a working capital adjustment. This strategic move indicates a potential refocusing of Agilent's business operations and capital allocation. Investors should monitor the closing conditions, including regulatory approvals, and the impact of the divestiture on Agilent's future revenue streams and profitability. The transition services agreement suggests a continued, albeit temporary, operational link between the two companies post-closing.
Key Highlights
- 1Agilent Technologies entered into an Asset Purchase Agreement with JDS Uniphase Corporation (JDSU) on February 10, 2010.
- 2The agreement includes the sale of Agilent's Network Protocol Test Products, Wireless Drive Test Systems, and Network Service Assurance and Test Systems businesses.
- 3The total cash purchase price for the divested assets is $165 million, subject to a post-closing working capital adjustment.
- 4The transaction is subject to customary closing conditions, including antitrust and competition law approvals.
- 5The deal is expected to close by August 2, 2010, with a potential extension to September 2, 2010.
- 6JDSU will offer employment to employees associated with the divested business.
- 7A Transition Services Agreement is in place for Agilent to provide certain services to JDSU post-closing.