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Teradyne announced its acquisition of GenRad on August 2, 2001, in a stock transaction valued at $260 million, including assumed GenRad debt. The deal closed on October 26, 2001. Teradyne sought to expand its circuit-board testing and inspection portfolio, combining its products with GenRad’s in-circuit, functional, optical and X-ray systems.
What did Teradyne acquire GenRad for?
The announced transaction value was $260 million, structured as a stock transaction. That headline value included GenRad debt: the August 2001 announcement put the debt at approximately $85 million. Teradyne’s later SEC filing reported that it assumed and repaid approximately $89.7 million of debt at closing. The announcement figure and the closing figure come from different points in the transaction and should not be treated as identical.
Under the final exchange terms, each GenRad share converted into 0.1733 Teradyne shares. Teradyne issued approximately 5.0 million common shares in the exchange. The SEC filing provides those closing mechanics; the $260 million figure describes the announced transaction value, not a cash purchase price.
Why did Teradyne buy GenRad?
Teradyne wanted a broader range of equipment and software for testing and inspecting circuit-board assemblies. GenRad brought in-circuit and functional test systems, optical and X-ray automated inspection, and factory-automation software. Teradyne said the combination would extend its product range and customer reach in the global circuit-board test and inspection market.
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At announcement, Teradyne said the GenRad business units it planned to retain had generated $255 million in revenue in the prior year. That is a historical revenue figure for those units, not a current market-size estimate.
Teradyne chairman, president and CEO George W. Chamillard described the intended portfolio breadth as “in-circuit and functional test systems and automated inspection systems—both optical and X-ray.” He also pointed to factory-automation software tools for deploying equipment and managing production processes.
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When did the acquisition close?
Teradyne announced the agreement on August 2, 2001. The transaction closed on October 26, 2001, after shareholder and regulatory approval. The announcement date marks the agreement; the October date marks completion.
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What happened to GenRad’s businesses?
Teradyne integrated the GenRad operations it retained into its Assembly Test organization, where the combined portfolio could serve circuit-board manufacturers with testing, inspection and related support. Diagnostic Solutions was handled separately rather than folded into that retained assembly and circuit-board test operation.
Teradyne’s stated rationale focused on broader product coverage and customer reach. The available figures establish the transaction structure and the prior-year revenue of the retained units, but do not establish a current market-size figure or a present-day consumer product connection.
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