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Teradyne sells connector division for $390 million

Posted: 12 Oct 2005 ?? ?Print Version ?Bookmark and Share

Keywords:Teradyne? amphenol? connectors? pcb? backplane interconnect?

Automatic test equipment company Teradyne Inc. has agreed to sell its connector division to Amphenol Corp. for $390 million in cash.

The sale is subject to a post-closing net asset value adjustment, Teradyne (Boston, Mass.) said.

Teradyne's connector division, based in Nashua, New Hampshire, supplies high-speed, high-density connectors, and printed circuit boards used in backplane interconnect systems. In 2004, the division accounted for 23 percent of Teradyne's revenue, the company said.

Teradyne reported a net loss $45.4 million on sales of $320.2 million in the second quarter of 2005, up 5 percent compared to the first quarter of 2005 in July 2005. The loss included $10.2 million in net restructuring and other charges and immediately prior to announcing its results Teradyne had said it would cut 400 jobs by year's end.

"The sale of Connection Systems will sharpen our focus on our core test businesses," said Michael Bradley, Teradyne president and chief executive officer, in a statement. "While Connection Systems has been part of Teradyne for more than 30 years, the long term strategic direction of that business and the rest of Teradyne has been diverging. Connection Systems is a better fit with Amphenol, and we wish the new, combined team continued success in the future."

The sale is expected to close in the fourth quarter.

- Peter Clarke

EE Times

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