Just install Visual Studio on the build server; It is a very common practice. The requirement is mentioned in the installation guidelines. You can have visual Studio 2010 and 2013 installed side-by-side if that is desired. There are so many parts of .NET that depend on it.
Install Visual Studio and other software to enable compilation and other capabilities
You must install on the build agent the version of Visual Studio that your team uses on its dev machines. See Installing Visual Studio. You must also install any other software and components that are installed on your dev machines and that are required to build your app.
http://msdn.microsoft.com/en-us/library/bb399135.aspx#software
You're even allowed to use an existing license for the build server, so there are no additional costs involved if you own an MSDN subscription:
Using Visual Studio on the Build Server
If you have one or more
licensed users of Visual Studio Ultimate with MSDN, Visual Studio
Premium with MSDN, or Visual Studio Professional with MSDN, then you
may also install the Visual Studio software as part of Team Foundation
Server 2013 Build Services. This way, you do not need to purchase a
Visual Studio license to cover the running of Visual Studio on the
build server for each person whose actions initiate a build.
http://www.microsoft.com/en-us/download/details.aspx?id=13350
Is there a specific reason for you boss to not want Visual Studio to be installed?
With regards to the Agile Test Runner, it is the improved test runner that shipped with Visual Studio 2012, it's the replacement of the old MsTest runner, and will replace the old MsTest runner for the last few features for which the old runner is still needed. Though the MsTest runner will still work, certain features will not be as easy to use and confugure (like Code Coverage gathering). The Agile test runner is also required for other test framwork extensibility options, including XUnit .NET, NUnit, but also Javascript Unit Test support (using Chutzpah).
Other features that will require Visual Studio to be installed include:
- Code Analysis
- Code coverage
- MsDeploy / WebDeploy
- SQL Server Data Tools
- and others.
As an alternative to get just the test runners, you could attempt to install the TFS Test Controller and Agent to the server (you don't need to configure them), the Test Agent will install a number of testing related features without actually installing the Visual Studio Shell.