Every year, IBO selects a firm from our industry as Company of the Year. This designation is based on IBO’s recognition that the selected analytical instrument maker has accomplished significant technical, operational and financial achievements during the year. Such achievements are measured by financial performance, market leadership, product introductions and key strategic investments.

IBO’s 2010 Company of the Year is Agilent Technologies with emphasis on its Life Science Group (LSG) and Chemical Analysis Group (CAG). This is the second time Agilent has received this honor, as it was previously selected as 2006 Company of the Year (see IBO 1/15/07). Agilent’s achievements in 2010 were even more noteworthy than those of 2006. The company rebounded from the global economic downturn of 2009 in dramatic fashion. Agilent’s Electronic Measurement Group expanded 24% in fiscal 2010, as demand from industrial, computer and semiconductor customers rebounded. The economic expansion, business investments and new product introductions were the key drivers.

LSG and CAG did even better. These two business segments now, for the first time, represent more than 50% of company revenues. Chemical analysis business revenues were up 73%, mostly because of Agilent’s acquisition of Varian in May 2010 (see IBO 5/15/10). But organic growth was up a remarkable 17% as well, due in large part to well-received new product introductions for GC/MS, ICP-MS and GC Triple Quadrupole MS systems. Agilent also increased its dominant position in the GC and GC/MS market excluding Varian.

Life science revenues grew 35% over fiscal 2009, which was also affected by the Varian acquisition, although organic growth was 17%. Particularly strong results were evident in academic and government markets, as well as for pharma and biotech, much of which is attributable to success with new LC and LC/MS products and the genomics product lines. Life Science revenues were at an all-time high in 2010.

Such performance was clearly exceptional, but what really made Agilent special in 2010 was its acquisition of Varian. The acquisition was announced in July 2009, but normal due diligence and especially regulatory oversight delayed closure until May 14, 2010. So while the major transaction, Agilent’s biggest ever, was pending, the company continued to drive for business success with existing businesses and prepared for the eventual integration of the Varian businesses.

Although most companies take a year or more to fully integrate major acquisitions, Agilent did it in six months. Profits were up for existing Agilent products, as well as for Varian products, which was an achievement given the uncertainties of such a long period between announcement and closure.

The combined companies have one website, unified call center, a combined field organization, and a single service and support process for customers. Dictated divestments were completed, facilities closed and personnel relocated in what appeared to be a seamless manner. Success in all these areas has raised customer loyalty, particularly for Varian, and led to the strong sales and profit results for fiscal 2010. Agilent Technologies’ investors have also signaled their support, raising Agilent share price 35% in 2010. The future looks very bright for Agilent Technologies.