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Posted: Sep 02, 2008

Teradyne Will Acquire A Leading Provider Of Semiconductor Test Equipment

(Nanowerk News) Teradyne, Inc. and Eagle Test Systems, Inc. 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."
"I am extremely excited about the opportunity to combine the effectiveness of Eagle Test's products and the strength of our financial model with Teradyne's tremendous market presence and worldwide distribution and support organization," said Len Foxman, CEO, president and chairman of Eagle Test. "Teradyne's sales and marketing infrastructure, along with their global customer relationships, will greatly accelerate Eagle Test's mission to deliver strong customer value and grow our business."
The acquisition will be subject to customary closing conditions, including the approval of Eagle Test shareholders, the receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and the absence of a material adverse change with respect to Eagle Test. The acquisition is expected to close in the fourth quarter of 2008. After the closing, Eagle Test will be run as a business unit within Teradyne's Semiconductor Test Division.
About Teradyne, Inc.
Teradyne is a leading supplier of Automatic Test Equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries. In 2007, Teradyne had sales of $1.1 billion and currently employs about 3,600 people worldwide. For more information, visit Teradyne is a registered trademark of Teradyne, Inc. in the U.S. and other countries. All product names are trademarks of Teradyne, Inc. (including its subsidiaries).
About Eagle Test Systems, Inc.
Eagle Test Systems designs, manufactures, sells and services high performance automated test equipment for the semiconductor industry. The company's products are used to test analog, mixed-signal and radio frequency (RF) semiconductors that are used in products such as digital cameras, MP3 players, automotive electronics, cellular telephones, computers and peripherals. The company was founded in 1976 and has offices located throughout the world, with corporate headquarters in Buffalo Grove, Illinois. For more information, visit
Source: Teradyne (press release)
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