Teradyne to Acquire Nextest Systems
SAN JOSE, CA, December 12, 2007
Teradyne (NYSE: TER) and Nextest Systems (Nasdaq: NEXT) have signed a definitive agreement under which Teradyne will acquire Nextest. Teradyne is a world leader in system-on-chip (SOC) test. Nextest's core business is the design and manufacture of flash memory test products.
As a result of the acquisition, Teradyne will expand its served market into the flash memory test segment, estimated to be more than $700 million in 2006. Of Nextest's $95.8 million in revenue in calendar year 2006, flash memory tester sales totaled about $80 million.
Under terms of the agreement approved by both boards of directors, Teradyne will pay $20 per share in cash for all the outstanding shares of Nextest. The aggregate purchase price is expected to be approximately $325 million.
"Joining Teradyne puts the market presence and reputation of a premier ATE provider behind all that we have accomplished," said Robin Adler, CEO of Nextest. "Teradyne's experience as a technology innovator along with their strong customer relationships will accelerate our mission to lower test costs and grow our business. We are very excited about the impact, potential, and opportunity this combination provides to our employees, stockholders, and most importantly, customers."
"Nextest brings us a solid flash memory test product line plus a very capable development and technical support organization," said Michael Bradley, president and CEO of Teradyne. "Their growing presence in the flash memory test market provides a strong addition to our SOC 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."
The acquisition is subject to customary closing conditions, including the tender of at least a majority of the shares of Nextest common stock, the receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and the absence of a material adverse change with respect to Nextest.
Upon closing, which is expected in the first quarter of 2008, Nextest will be run as a business unit within Teradyne's Semiconductor Test Division.
About Teradyne
Teradyne is a leading supplier of ATE for testing complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries. In 2006, Teradyne had sales of $1.36 billion from continuing operations and currently employs about 3,600 people worldwide. For more information, visit www.teradyne.com. Teradyne is a registered trademark of Teradyne, Inc. in the United States and other countries. All product names are trademarks of Teradyne, Inc., including its subsidiaries.
About Nextest
Nextest is a low-cost leader in the design and manufacture of ATE for flash memory and SOC semiconductors. Nextest's products address the growing demand from manufacturers for ATE with increased throughput, functionality, and reliability while reducing time to market and cost of test. Nextest has shipped more than 1,900 systems to more than 70 semiconductor companies worldwide. Further information is available at www.nextest.com