Agilent Said to Be Selling Chip Unit for $2.65 Billion

Agilent Technologies Inc. is expected to announce Monday that it will sell its semiconductor unit to private equity firms Kohlberg Kravis Roberts & Co. and Silver Lake Partners for about $2.65 billion, according to a source close to the sale process.

Agilent has been in talks for months with teams of private equity firms over a sale of the business, which sells chips for mobile phones, printers and other tech equipment and has been a drag on the company’s financial performance.

Trading in Agilent shares, which rose 29 cents to $26.41 while the broader market dropped, was halted after the close of trade. Agilent will also report its quarterly earnings on Monday.

Private equity firms, many of them flush with cash and looking for ways to invest it, have focused intently on the technology sector in recent months.

Silver Lake invests almost solely in technology, while KKR, one of the world’s biggest buyout firms, invests in a broad range of industries.

Agilent’s stock has been trading at a discount to many of its peers, and well below its initial public offering price of $30 a share, in part because of its exposure to the chip sector.

Agilent’s chief financial officer said in May that the weak semiconductor unit was not “core” to the company.

But new Agilent Chief Executive Bill Sullivan has worked in recent months to boost the business’ performance and said he hoped for a semiconductor recovery.