August 2, 2001 – Teradyne Inc., Boston, MA, has signed of a definitive agreement to acquire GenRad Inc., Westford, MA, a leading manufacturer of automatic test equipment and related software.
Under the terms of the proposed acquisition, each outstanding share of GenRad common stock would be converted into 0.1733 shares of Teradyne common stock. At Teradyne’s closing price of $35.10 on August 1, the transaction would be valued at approximately $260 million in the aggregate. This includes the assumption of debt of approximately $85 million, before considering any proceeds from the anticipated sale of GenRad’s Diagnostic Solutions business unit, which is expected to occur before the closing with Teradyne. Revenue for the GenRad business to be retained by Teradyne following the closing is approximately $255 million in 2000.
Robert M. Dutkowsky, chairman, president and CEO of GenRad will manage the combined Teradyne circuit board test and inspection division.
The acquisition of GenRad is expected to close in the 4Q01 and is subject to approval by both the shareholders of GenRad and regulators.
George W. Chamillard, Teradyne, chairman, president and CEO stated, “The combination of Teradyne and GenRad broadens our scope in the global electronics manufacturing test market, creating a ‘total test solution’ that will significantly benefit customers.”
“Today’s electronic products are packing higher speeds and greater functionality into denser spaces, creating a packaging revolution in electronics manufacturing,” Chamillard said. “This means the electronics product assembly process has become increasingly complex, placing new demands on test and inspection equipment–and creating new market growth opportunities. This complexity also requires sophisticated software tools to optimize and improve that process. The addition of GenRad products to our existing product line will give us the industry’s broadest range of circuit board test and inspection products: in-circuit and functional test systems and automated inspection systems–both optical and X-ray. Tying it together will be the factory automation software tools needed to deploy the equipment strategically and manage the process efficiently.”