February 23, 2007 – Mosaid Technologies Inc. is bowing out of the automatic test equipment (ATE) market, selling assets and IP related to its high-performance memory tester platform to Teradyne Inc. for about US $17 million.
Teradyne will take on the company’s Systems Division new product development team and receive an exclusive license to certain IP associated with Mosaid’s current ATE product lines. Teradyne, which termed the assets “enabling test technology,” also said it will “immediately expense a substantial portion” of the purchase price to in-process R&D.
Mosaid, which will generate a pretax gain of ~$11 million and net cash proceeds of $13-$14 million, will wind down its remaining ATE business by April 30, with ongoing support for its installed base of tester products to be handled through alternate service providers.
“Challenging business conditions within this market, coupled with our strategic emphasis on intellectual property, led to this divestiture,” said George Cwynar, Mosaid president and CEO, in a statement. He noted that the move “is a critical step in our strategic alternatives initiative” and allows the company to sharpen its focus on developing and licensing its intellectual property.