Advantest Seals $1.1 Billion Deal To Buy US Peer Verigy
March 28 2011 - 3:43AM
Dow Jones News
Advantest Corp. (6857.TO) said Monday it has agreed to acquire
U.S. peer Verigy Ltd. (VRGY) for $1.1 billion, or $15 per share, in
a deal that allows the Japanese maker of testing systems for memory
chips to diversify and reduce its dependence on often volatile
demand for personal computers.
Advantest, whose mainstay product is a tester for dynamic random
access memory, or DRAM, chips, had been in pursuit of Verigy since
December. It's confident the deal will get antitrust approval in
the latest demonstration of Japanese companies' growing appetite,
and funds, for overseas deals to counter the impact of sluggish
markets at home.
Earlier this month, Verigy's board dropped its previous
opposition to Advantest's overtures, back the latter's takeover
offer and scrapping plans of its own to buy U.S. peer LTX-Credence
Corp. (LTXC).
Advantest is keen to diversify, since its memory tester business
depends largely on conditions in the DRAM market, which can be
volatile depending on demand for personal computers.
Analysts say that by buying Verigy, Advantest will have a better
product balance since it can tap into demand for both memory chip
and large-scale system integration testers.
-By Hiroyuki Kachi and Kenneth Maxwell, Dow Jones Newswires;
+813-6269 2788; hiroyuki.kachi@dowjones.com
Verigy Ltd. (MM) (NASDAQ:VRGY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Verigy Ltd. (MM) (NASDAQ:VRGY)
Historical Stock Chart
From Jul 2023 to Jul 2024