BOSTON -- In a move to expand in board-level test systems, Teradyne Inc. today announced it will acquire GenRad Inc. for $260 million in stock. The acquisition price includes the assumption of $85 million in debt.
"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," said George W. Chamillard, chairman, president and CEO of Teradyne. "Tying it togetherwill be the factory automation software tools needed to deploy the equipment strategically and manage the process
GenRad chairman, president and CEO Robert M Dutkowsky will manage the combine GenRad/Teradyne circuit board test and inspection division after the transaction is completed. The business operations being acq uired by Teradyne accounted for $225 million in 2000.
The acquisition is expected to be completed in the fourth quarter of 2001 and is subject to approval by shareholders of both companies. Teradyne said the purchase is expected to be "slightly dilutive" to the company in the fourth quarter of 2001. The transaction will be accretive in 2002, when "cost synergies are fully realized and
demand picks up," said the Boston supplier of chip and board testing systems.