Test gigant Teradyne to acquire GenRad

Under the terms of the proposed acquisition, each share of GR common stock would be converted into 0.1733 shares of Teradyne’s. The transaction would be valued at approximately $260m. This includes the assumption of debt of approximately $85m, before considering any proceeds from the anticipated sale of GR’s Diagnostic Solutions business unit, which is expected to occur before. Revenue for the GR business was about $255m last year. Robert M. Dutkowsky, GR chairman, president and CEO, will then manage the combined Teradyne circuit board test and inspection division.

The acquisition is expected to close in the fourth quarter of 2001, and is subject to approval by both the shareholders of GR and regulators. The transaction is expected to be slightly dilutive in the fourth quarter, with the expectation that it becomes accretive in 2002 when cost synergies are realized and demand may pick up. George W. Chamillard, Teradyne chairman, president and CEO stated, ”The combination of Teradyne and GenRad broadens our scope in the global manufacturing test market, creating a total test solution that will benefit customers significantly. The assembly process has become increasingly complex, placing new demands on test and inspection equipment, and creating market growth opportunities. This complexity also requires sophisticated software tools to optimize and improve that process. The addition of GenRad will give us the industry’s broadest range of board test and inspection products, in-circuit, functional test and automated inspection systems – both optical and X-ray.”

GenRad’s Dutkowsky stated, that ”Adding our strengths in testing hardware, software and service solutions to Teradyne’s breadth is a superb strategic fit. Our customers will benefit from the expanded capabilities this organization will bring to manufacturing test environments worldwide.” He noted also, that ”Our shareholders will also benefit as new owners of Teradyne stock because, as a global industry leader, Teradyne is ideally positioned in the marketplace when growth resumes.” (gbw)

EPP 152