By Dow Jones Business News,
January 07, 2014, 01:16:00 PM EDT
By Anna Prior
Diversified testing-equipment company Agilent Technologies Inc. ( A ) on Tuesday unveiled the name for the electronic-
measurement business it is spinning off.
The company will be called Keysight Technologies, and Agilent said it expects to spin off the business in early
Keysight will concentrate solely on the electronic-measurement industry, Agilent said, adding the standalone company
will be based in Santa Rosa, Calif., and have about 9,500 employees in 30 countries.
Agilent had said in September it planned to break up into two publicly traded firms. One company will focus on life
sciences, diagnostics and applied markets that will retain the Agilent name, the company said at the time, and the other
company will be comprised of the electronic-measurement products business.
The company has said the breakup would allow for greater management of the two businesses and the new Agilent to focus
more on the higher-growth life sciences, diagnostics and applied market units as well as reduce exposure to the more
cyclical electronic-measurement industry.
Illustrating this was the company's fiscal fourth-quarter earnings report in November, when it reported earnings fell
50% from the year-ago period as continued weakness in its electronic-measurement business continued to weigh on the
Agilent has a history of spinoffs and reinventions. Hewlett-Packard Co. (HPQ) decided to spin off its test and
measurement equipment operations in 1999, first creating Agilent. According to Agilent, the company has undergone four
major spinoffs since 2005, including its spinoff around 2006 of chip-testing company Verigy Ltd., which rival Advantest
Corp. (ATE, 6857.TO) bought in 2011.
Agilent shares rose 1.3% to $57.40 in recent trading Tuesday. The stock has risen 35% over the last 12 months.
Write to Anna Prior at email@example.com
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