Shares of PerkinElmer (NYSE:PKI), a manufacturer of technology solutions addressing health and safety concerns, ticked up more than 3% Wednesday on the company’s announcement late Tuesday that it is selling its illumination and detection solutions business to NY-based private equity firm Veritas Capital Fund for $500 million.

Proceeds from the transaction, expected to generate after-tax cash of about $470 million, will go toward future acquisitions and stock repurchases.

Amid the announcement, PerkinElmer’s board of directors increased authorization for its stock repurchase program to 13 million shares.

The business, which provides custom-designed specialty lighting and sensor components, subsystems and integrated solutions to major OEMs in the health, environmental and security segments, employs 3,000 workers and sports 14 global manufacturing facilities.

It is expected to generate revenues of about $300 million in 2010.

“The divestiture of our IDS business reduces the complexity of the company and frees up capital to reinvest in our more attractive human health and environmental health end markets,” said the company’s CEO, Robert Friel. “In addition, this transaction should reduce the company’s exposure to more cyclical end markets and improve our top-line growth profile.”

The company expects third quarter earnings in the range of 27 to 29 cents a share, a reflection of the IDS transaction, which is slated to close by the end of the year, and estimates full year earnings in the range of $1.24 to $1.29.

Although the company has yet to release full year guidance for 2011, it expects the deal to be 8 to 10 cents dilutive in that year.