Very little magical equipment is actually good at making a muggle dangerous, no matter what people say. Yes, it can make some tricky stuff, items that will inconvenience a high level party, but the items that actually matter are those which augment already capable characters. Shit with spells attached to it you can use against a target is always subpar and overpriced for the effect you generate. Tremendous wealth can be sunk into relatively poor methods of offensive magic with little to show for it. If he's smart, Varys has gear to make him more difficult to harm, to allow him to become Invisible, to hide him from Divination, to heal incidental injuries, and to flee. He could acquire all of that with the time and monetary investment it would take to get a single halfway decent offense-oriented magic item that poses even a minor threat.
I'm expecting him to trigger a bound Summon of some sort, turn himself Invisible in some manner, then run for his life.
Objectively, you are correct.
This said, magic is so new at Planetos, and even item bound one so deadly for the mundanes, that Varys might overestimate their usefulness.
Given his character I agree that he probably will run, and have fitting items, though.
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