WASHINGTON (dpa-AFX) - Teradyne Inc. (TER), Wednesday said it has agreed to purchase privately-held LitePoint Corp. for $510 million net of LitePoint cash and tax benefits.
LitePoint is a provider of production line test equipment for wireless products including smartphones, tablets and WiFi-enabled PCs. The company generated sales of $86 million in 2010, and currently expects 2011 sales in a range of $125 million to $135 million.
Teradyne will pay an additional $70 million if the acquisition achieves certain performance targets through 2012.
The board of both companies have approved the transaction, and expects to close the deal in the fourth quarter 2011.
Chief Executive Mike Bradley said, 'We're very pleased to be joining forces with LitePoint. This acquisition provides another very significant growth engine to our business and complements our existing chip and system-level technology portfolio.'
TER closed Wednesday's trading on the NYSE at $12.60, up $0.43 or 3.53%, on a volume of 3.9 million shares. The stock further gained 1.08% in after-hours trade.
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