Teradyne Announces Agreement to Acquire LitePoint, Leader in Wireless Product Test
- Expands Teradyne's wireless test market by approximately $1B
- Aligned to smart phone, tablet, mobile Internet growth
- 10% or more accretive to 2012 consensus EPS estimates
- Complementary markets with no product overlap and low integration risk
NORTH READING, Mass.--(BUSINESS WIRE)--
Teradyne,
Inc. (NYSE:TER) today 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 to discuss the acquisition will be held on Wednesday September
14, 2011 at 5:30 p.m. EST. Interested investors should access the
webcast at www.teradyne.com
and click on "Investors" at least five minutes before the call begins.
Interested investors can also call 1-866-322-9525 (U.S. and Canada) and
1-706-902-0224 (outside the U.S. and Canada). The conference ID is
10328306. A replay will be available approximately two hours after the
completion of the call. The replay number in the U.S. & Canada is
1-855-859-2056 or 1-404-537-3406 outside U.S. and Canada. The pass code
for both numbers is 10328306. A replay will also be 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.
Safe Harbor Statement
This release contains forward-looking statements regarding the
transaction, Teradyne's future financial results, and LitePoint's future
business prospects and market conditions. Such statements are based on
the current assumptions and expectations of Teradyne's management and
are neither promises nor guarantees of future performance. You can
identify these forward-looking statements based on the context of the
statements and by the fact that they use words such as "will,"
"anticipate," "expect," "project," "intend," "plan," "believe," "target"
and other words and terms of similar meaning in connection with any
discussion of future operating or financial performance. There can be no
assurance that these forward looking statements will be achieved.
Important factors that could cause actual results to differ materially
from those presently expected include: conditions affecting the markets
in which LitePoint operates; market acceptance of LitePoint's new
products; competition from larger and more established companies in
LitePoint's markets; the protection of LitePoint's intellectual
property; the retention of key employees; the uncertainty of regulatory
approval of the transaction; the parties' ability to satisfy the merger
agreement conditions and consummate the transaction; Teradyne's ability
to successfully grow LitePoint's business; and other events, factors and
risks disclosed in filings with the SEC, including, but not limited to,
the "Risk Factors" section of Teradyne's Annual Report on Form 10-K for
the fiscal year ended December 31, 2010 and Quarterly Report on Form
10-Q for the period ended July 3, 2011. The forward-looking statements
provided by Teradyne in this press release represent management's views
as of the date of this release. Teradyne anticipates that subsequent
events and developments may cause management's views to change. However,
while Teradyne may elect to update these forward-looking statements at
some point in the future, Teradyne specifically disclaims any obligation
to do so. These forward-looking statements should not be relied upon as
representing Teradyne's views as of any date subsequent to the date of
this release.
Teradyne
Andrew Blanchard, 978-370-2425
Investor Relations
investorrelations@teradyne.com
Source: Teradyne, Inc.
News Provided by Acquire Media
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