News Article
Teradyne to acquire Nextest Systems Corporation
Teradyne Incorporated and Nextest Systems Corporation have announced that they have signed a definitive agreement under which Teradyne will acquire Nextest.
Teradyne Incorporated and Nextest Systems Corporation have announced that they have signed a definitive agreement under which Teradyne will acquire Nextest. As a result of the acquisition, Teradyne will expand its served market into thefast-growing flash memory test segment, estimated to be more than US$700 million in 2006. Of Nextest's US$95.8 million in revenue in calendar year 2006, flash memory tester sales totalled about US$80 million.
Under terms of the agreement approved by both boards of directors, Teradyne will pay US$20 per share in cash for all the outstanding shares of Nextest. The aggregate purchase price is expected to be approximately US$325 million. This is net of the cash acquired and includes the fair value of fully vested employee equity instruments and transaction costs. The acquisition is expected to be slightly dilutive to 2008 GAAP earnings per share and slightly accretive to 2008non-GAAP earnings per share after excluding the purchase accounting impacts. The acquisition has been unanimously approved by the boards of directors of Teradyne and Nextest.
"Joining Teradyne puts the market presence and superior reputation of the premier ATE provider behind all that we have accomplished," said Robin Adler, CEO of Nextest. "Teradyne's rich experience as a technology innovator along with their strong customer relationships, will greatly accelerate our mission to lower test costs and to grow our business. We are very excited about the impact, potential and opportunity this combination provides to our employees, our stockholders, and most importantly, our customers.
"Nextest brings us a solid flash memory test product line, plus a very capable development and technical support organisation," said Michael Bradley, president and CEO of Teradyne. "Their growing presence in the flash memory test market provides a strong addition to our System-On-Chip product offerings. This is one of the few business combinations in the test market where customers get products that are so complementary. Nextest's Magnum product line will be backed by Teradyne's global customer support team and will give us a powerful growth engine in the coming years."
