Teradyne, Inc. (NYSE:TER)
recently announced it has signed a definitive agreement to purchase privately
held LitePoint Corporation, a leading provider of production line
test equipment for wireless products including smart phones, tablets and
WiFi-enabled PCs, for $510 million net of LitePoint cash and tax benefits plus
$70 million if certain performance targets are met extending through 2012. The
acquisition has been approved by the Board of Directors of each company and is
expected to close in the fourth quarter of 2011 subject to customary closing
conditions and regulatory approvals.
The explosive growth of the mobile Internet will
drive the number of wireless devices from 2 billion to over 3 billion by 2014.
Extending from computers, smart phones and tablets to automobiles and home
appliances, wireless communication networks are the fabric connecting modern
society. The low-cost and high-quality test of products operating in these
networks is a fundamental driver of that growth.
LitePoint provides the leading solutions for
production testing of wireless products. Using easy-to-deploy, innovative test
methodologies running on a software-controlled modular design, LitePoint’s IQ product line is
the industry standard for high-volume, low-cost product test. LitePoint had
sales of $86 million in 2010 and is projecting sales of $125-$135 million in
2011.
"We're very pleased to be joining forces
with LitePoint," said Mike Bradley, President and CEO of Teradyne.
"This acquisition provides another very significant growth engine to our
business and complements our existing chip and system-level technology
portfolio.”
“The combination creates unparalleled chip to
system technical expertise, which will deepen and strengthen our products and
support,” said Dr. Benny Madsen, Chairman and CEO of LitePoint. “Teradyne’s
world-class, high-volume test expertise will be transformational to our
wireless test solutions and to the industry as a whole.”
A webcast replay on discussion of the acquisition
is available on the Teradyne website, www.teradyne.com, through October 12, 2011.
About LitePoint
LitePoint is based in Sunnyvale, California. The
company designs, develops, and supports advanced wireless test solutions for
developers of wireless devices and consumer electronics, contract
manufacturers, and wireless integrated circuit designers. LitePoint solutions
have optimized and verified the operation of more than one billion wireless
devices worldwide. LitePoint products are used in development environments and
high-volume manufacturing and provide its customers with superior ROI, faster
time-to-market, improved manufacturing yields, higher product quality, and
increased profitability. For more, go to www.litepoint.com.
About Teradyne
Teradyne (NYSE:TER)
is the leading supplier of Automatic Test Equipment used to test complex
electronics used in the consumer electronics, automotive, computing,
telecommunications, and aerospace and defense industries. Teradyne had 2010
sales of $1.6 billion and employs about 3,000 people worldwide. For more
information, visit www.teradyne.com. Teradyne(R) is a registered trademark of
Teradyne, Inc. in the U.S. and other countries.