Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
EE Times-Asia > T&M

Credence, LTX join forces, ink merger deal

Posted: 25 Jun 2008 ?? ?Print Version ?Bookmark and Share

Keywords:assembly and test? ATE company? merger agreement?

ATE firms Credence Systems Corp. and LTX Corp. have entered into a definitive agreement to combine the two companies in a tax-free, all-stock merger of equals.

The companies believe their combined strengths will create a leading provider of focused, cost-optimized solutions designed to enable customers to implement test strategies to maximize their profitability. The new company will address the broad, divergent test requirements of the wireless, computing, automotive and entertainment market segments. It will offer a complementary portfolio of technologies, the largest installed base in the Asia-Pacific region, and a global network of strategically deployed applications and support resources.

Under the terms of the agreement, Lavi Lev, president and CEO of Credence, will become executive chairman of the combined company for a transitional period following the merger. David Tacelli, CEO and president of LTX, will become CEO and president; and Mark Gallenberger, chief financial officer (CFO) and VP of LTX, will become CFO. Casey Eichler, senior VP and CFO of Credence, has agreed to remain with the combined company through a transition period. The board of directors of the combined company will include five directors designated by LTX (including Tacelli), and four directors designated by Credence (including Lev).

"I am very excited about joining forces with LTX. This merger, from a technical and business point of view, represents the logical next step for both companies' long-term growth," said Lev. "We believe the combined strength of our technical expertise in RF, digital, mixed-signal and analog, coupled with a complementary product portfolio, will benefit our customers as they test and deploy high volume, highly integrated devices into their respective market segments. From a business perspective, the merger broadens our customer base and provides a strong opportunity for growth."

"The technical and business challenges faced by our customers continue to intensify as time to market shrinks and margins are pressured by demands for new features at lower prices," noted Tacelli. "Now more than ever, it is vital we deliver cost optimized test solutions focused on our customers' specific technologies, product mix and device volume levels. We believe the timely merger of Credence and LTX enables us to build a test company with the financial strength, growth opportunities, critical mass, and operational efficiency to lead the industry as it faces these challenges."

The merger is subject to approval by both companies' stockholders, as well as the satisfaction of customary closing conditions and regulatory approvals. The boards of directors of both companies have unanimously approved the agreement and recommend their stockholders vote in favor of it. Pending regulatory approval, the companies expect the transaction to be completed by the end of September.

Article Comments - Credence, LTX join forces, ink merge...
*? You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.

Back to Top