By Lisa Kerner
Charlotte, N.C., Dec. 12 - Teradyne, Inc. will expand its presence in the fast-growing flash memory test segment with the acquisition of Nextest Systems Corp., the company announced on Wednesday.
The boards of directors of both companies approved a definitive agreement giving Nextest stockholders $20 cash per share in a deal valued at some $325 million.
Also included in the agreement is a $14.9 million termination fee, a form 8-K filing with the Securities and Exchange Commission stated.
Once the merger closes, most likely in the first quarter of 2008, Nextest will become a business unit within Teradyne's Semiconductor Test Division.
"Nextest brings us a solid flash memory test product line, plus a very capable development and technical support organization," Teradyne president and chief executive officer Michael Bradley said in a company news release.
"Their growing presence in the flash memory test market provides a strong addition to our System-On-Chip product offerings," Bradley added.
Teradyne, based in North Reading, Mass., supplies automatic test equipment used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries.
Nextest designs and manufactures automatic test equipment for flash memory and System-On-Chip semiconductors. The company is located in San Jose, Calif.
| Acquirer: | Teradyne, Inc.
|
| Target: | Nextest Systems Corp.
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| Announcement date: | Dec. 12
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| Transaction total: | $325 million
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| Price per share: | $20.00
|
| Termination fee: | $14.9 million
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| Expected closing: | First quarter of 2008
|
| Stock price of target: | Nasdaq: NEXT: $11.99 on Dec. 11
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