Teradyne Buys Eagle Test

Teradyne, Inc. to acquire Eagle Test Systems, Inc.

September 2, 2008

1 Min Read

NORTH READING, Mass. -- Teradyne, Inc. (NYSE:TER - News) and Eagle Test Systems, Inc. (NASDAQ:EGLT - News) today announced that they have signed a definitive agreement under which Teradyne will acquire Eagle Test. Teradyne is a world leader in System-On-a-Chip (SOC) semiconductor test, while Eagle Test is a leading provider of analog, mixed-signal and radio frequency semiconductor test products.

Under the terms of the agreement, Eagle Test shareholders will receive $15.65 per share in cash. The aggregate purchase price is expected to be approximately $250 million, net of cash acquired, and includes the fair value of fully vested employee equity instruments. Teradyne has secured a bridge financing commitment in connection with the transaction.

The transaction is expected to be accretive to 2009 non-GAAP EPS, after excluding purchase accounting effects.

“We’re very pleased to be combining forces with Eagle Test,” said Mike Bradley, president and CEO of Teradyne. “Eagle Test has a solid franchise in power management and other analog-dominant IC test applications, which will complement the SOC test solutions provided by our FLEX and J750 test systems. We plan to put the full weight of our worldwide distribution organization behind Eagle Test’s ETS product line so customers can benefit from this very cost effective test platform.”

Teradyne Inc. (NYSE: TER)

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like