Mergers & Acquisitions

Mergers & Acquisitions

September 20, 2011

Teradyne to Acquire LitePoint

Teradyne, Inc., a leading supplier of Automatic Test Equipment, has signed an agreement to acquire LitePoint Corporation (News - Alert), 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. Teradyne (News - Alert) also held a webcast to discuss the acquisition on Wednesday, Sept. 14, 2011 at 5:30 p.m. EST.

"We're very pleased to be joining forces with LitePoint," said Mike Bradley, President and CEO of Teradyne, in a statement. “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.”

Teradyne’s acquisition of LitePoint is expected to close in the fourth quarter of 2011 subject to customary closing conditions and regulatory approvals. The deal has already been approved by Board of Directors of both companies.

 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. The company recently announced a collaboration agreement with setcom (News - Alert) wireless products GmbH. The alliance enabled the combination of LitePoint's software and instrument expertise with setcom's signaling, IMS, multi-media and application layer expertise, providing customers with complete test solutions from the physical interface and modem signaling through to IMS-based services and the applications layer interface. This enabled product designers to fully verify all aspects of their products ensuring the best user experience for their customers.

Rahul Arora is a TMCnet contributor. He has worked as an editor and freelance writer for several reputed organizations in India. To read more of his articles, please visit his columnist page.

Edited by Rich Steeves


blog comments powered by Disqus

FREE eNewsletter

Financial Technology Industry News