Nano Instruments, an Oak Ridge supplier of nanotechnology research tools, will be acquired by Agilent Technologies, a spin-off from Hewlett-Packard and a leader in measurement instruments and microelectronics technology with headquarters in California's Silicon Valley.

Agilent, which posted net revenue of $5.4 billion in 2007, announced Monday that it would acquire the Nano Instruments business unit of MTS Systems Corp. for an undisclosed price.

The research equipment developed by Nano Instruments is used in applications such as measuring and verifying the structural integrity of semiconductor devices, coatings and thin films.

The deal keeps Agilent in the forefront of nanoindentation, the science of characterizing the hardness, elasticity and viscosity of materials at nanometer scale, according to Tanya Jamison, a 20-year Agilent veteran who will serve as general manager.

"This acquisition allows us to really put our footprint in the nano measurement business," Jamison said.

Nano Instruments was founded in Oak Ridge by Warren Oliver and John Pethica in 1983. The business was acquired by Minneapolis-based MTS Systems Corp. in 1998.

All 45 Nano Instruments employees are expected to join Agilent and overall employment at the Oak Ridge facility should continue to grow as the company addresses new opportunities, Oliver said.

"The opportunities are just tremendous," Oliver said. "This will absolutely bring jobs and growth to this area."

Nano Instruments will have access to Agilent's worldwide sales channels that serve customers in 110 countries.

Oliver said one of the strengths his company brings is its relationship with Oak Ridge National Laboratory and the University of Tennessee.

"We have a very strong relationship with the materials science group at ORNL," he said.

Agilent has four major research labs worldwide that Nano Instruments will be able to access for future research and development, Oliver said.

"I'm excited about the potential opportunities to access the technology in the research labs," he said.

The Nanotechnology Measurements Division is a part of Agilent's Materials Science Solutions Unit, which was formed in 2007.

Agilent's Materials Science Solutions Unit has been gathering technology through other recent acquisitions including the recent purchase of TILL Photonics and Colloidal Dynamics.

"This acquisition comes at a time when Agilent is making a thrust into nanotechnology," Oliver said. "Their strategic plan is closely aligned to a broad set of product offerings that complement our technology."

Agilent, which spun off from technology giant Hewlett-Packard in 2000, brings a strong corporate culture to the table, Jamison said, adding that the success of many corporate acquisitions is often based on the cultural synergy between the companies.

"The group dynamics within our two companies are very similar," Jamison added. "It will be a good fit culturally."

Oak Ridge is becoming a leading center for nanotechnology as ORNL-based researchers develop practical applications for the science of extremely small materials.