Teradyne acquires wireless test equipment maker LitePoint

By James M. Connolly

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Test equipment developer Teradyne Inc. of North Reading (NYSE:TER) today announced the acquisition of LitePoint Corp. of Sunnyvale, Calif., for up to $580 million.

Privately held LitePoint provides production line test equipment for wireless networking products such as smartphones, tablets and WiFi-enabled computers. According to Teradyne, the deal expands Teradyne’s market by about $1 billion as it aligns its product offerings more with the growing mobile device marketplace. Teradyne said there is no overlap with its existing offerings. The price is based on $510 million net of LitePoint cash and tax benefits plus $70 million if performance targets are met through 2012.

Teradyne said the boards of both companies have approved the deal, and that it is expected to close in the fourth quarter.

In November of 2010, Teradyne’s board approved a $200 million stock buyback plan.

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