Summary
Teradyne, Inc. (TER) announced on October 6, 2011, the completion of its acquisition of LitePoint Corporation, a key player in wireless test solutions. This strategic move, effective October 5, 2011, involved a merger where LitePoint became a wholly-owned subsidiary of Teradyne. The transaction's initial cost was approximately $510 million, net of cash and tax benefits from LitePoint. Additionally, there's a potential earn-out of up to $70 million, payable in cash or Teradyne stock, contingent upon LitePoint achieving certain revenue performance targets through 2012. The company also assumed LitePoint's outstanding equity awards and stock appreciation rights.
Key Highlights
- 1Completion of the acquisition of LitePoint Corporation by Teradyne on October 5, 2011.
- 2LitePoint is now a wholly-owned subsidiary of Teradyne.
- 3Initial purchase price approximately $510 million, net of LitePoint's cash and tax benefits.
- 4Potential earn-out of up to $70 million based on 2012 revenue performance.
- 5Earn-out payments can be made in cash or Teradyne common stock at Teradyne's discretion.
- 6Teradyne assumed all unvested LitePoint equity awards and stock appreciation rights.
- 7This acquisition is expected to enhance Teradyne's position in the wireless test market.