Agilent Technologies Inc said on Monday it agreed to buy Varian Inc in a $1.5 billion deal designed to bolster the company's bioanalytical measurement business.

Agilent, which makes electronic testing equipment, would pay $52 a share for Varian, which specialized in making bioanalytical instruments to measure various biological and physical properties. The price marks a 35 percent premium to Varian's closing share price on Friday.

Both boards have approved the deal.

Agilent said it expects approval from regulators before the end of the year, and once completed, the transaction would likely result in $75 million in annual savings.

(Reporting by Paul Thomasch, editing by Gerald E. McCormick)