Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

LTX-Credence Announces Agreement to Purchase Multitest and Everett Charles Technologies



LTX-Credence Announces Agreement to Purchase Multitest and Everett Charles
Technologies

Acquisition Creates New Company With a Bold Vision Based on Combined Expertise

NORWOOD, Mass., Sept. 6, 2013 (GLOBE NEWSWIRE) -- LTX-Credence Corporation
(Nasdaq:LTXC) today announced an important step in the evolution of the
semiconductor test cell with an agreement to acquire the Multitest and Everett
Charles Technologies (ECT) businesses of Dover Corporation (NYSE:DOV).

LTX-Credence and Dover Printing & Identification, Inc., a subsidiary of Dover
Corporation (Dover), have signed a definitive agreement for the acquisition by
LTX-Credence of the assets and stock exclusively and primarily related to the
Multitest and ECT businesses for a purchase price of $93.5 million, of which
$73.5 million will be paid in cash through a combination of existing
cash-on-hand and bank debt and $20.0 million will be paid by the issuance of a
promissory note by LTX Credence to Dover. The purchase price is subject to
customary adjustments. The deal is expected to close by December 31, 2013,
pending satisfaction of customary closing conditions, including with respect
to required regulatory filings. We anticipate that this acquisition will
create a combined company with trailing 12-month pro forma revenues of
approximately $420.0 million and we expect the acquisition to be immediately
accretive to LTX-Credence's earnings.

The combination of LTX-Credence, Multitest and ECT will provide LTX-Credence
with the opportunity to serve a greater share of the semiconductor test cell,
while increasing access to the electronics manufacturing industry. The
combined company will be the only provider of comprehensive test solutions and
services for the semiconductor and printed circuit board markets—redefining
the test cell by assembling best-in-class technology from three market-leading
companies into new, innovative solutions.

The acquisition is intended to:

  * Expand LTX-Credence's share of the semiconductor test cell;
  * Increase the size of the Company's total addressable market from $2.5
    billion to approximately $5.0 billion;
  * Increase efficiency, accelerate the time to high-volume production and
    reduce costs within the wafer sort and final test cells;
  * Diversify into vertical markets, such as PCB (Printed Circuit Board) and
    PCBA (Printed Circuit Board Assembly) testing;
  * Improve business cycle performance with an annual recurring revenue stream
    of approximately $240.0 million; and
  * Deliver approximately $15.0 million in expected synergies, leading to
    enhanced cash generation and profitability.

"By bringing together industry-leading semiconductor and PCB test products and
services, we are creating a comprehensive set of solutions that deliver
enhanced value, high performance and world-class quality," said David Tacelli,
LTX-Credence president and chief executive officer. "While one benefit of this
combination is the ability to integrate best-in-class technologies from three
leading companies into new, innovative solutions, we will continue to support
and develop the individual products our customers rely on today, as well as
create new products and services for the markets we serve."

The Company will conduct a conference call to discuss the acquisition of these
businesses on Friday, September 6, 2013, at 09:00 AM EDT. The conference call
may be accessed via telephone by dialing (877) 853-5334. The call will be
simulcast via the LTX-Credence web site at
http://investor.ltxc.com/events.cfm. Audio replays of the call can be heard
via telephone through September 10, 2013, by dialing (855) 859-2056;
conference ID number 53788002. A replay of the webcast will be available on
our web site 90 minutes following the conference call at
http://investor.ltxc.com/events.cfm.

About LTX-Credence Corporation

LTX-Credence is a global provider of ATE solutions designed to deliver value
through innovation enabling customers to implement best-in-class test
strategies to maximize their profitability. LTX-Credence addresses the broad,
divergent test requirements of the wireless, computing, automotive and
entertainment market segments, offering a comprehensive portfolio of
technologies, the largest installed base in the Asia-Pacific region, and a
global network of strategically deployed applications and support resources.
Additional information can be found at www.ltxc.com.

About Multitest

Since 1980, Multitest has been one of the world's leading manufacturers of
test equipment for semiconductor's integrated circuits, often called "chips".
As a comprehensive one-stop supplier, Multitest markets test handlers,
contactors and semiconductor test boards. The company's products are used for
the functional test of chips. Together with the actual tester they are
combined to create the test cell. A high throughput rate, precision
temperature accuracy and the latest in measurement and production technology
are all important factors. Multitest's primary customer base is multinational
manufacturers of semiconductors (microchips). Multitest provides clients with
highly innovative test handling and test interface solutions, custom-tailored
to fit their individual needs and requirements. Leveraging a comprehensive
product portfolio that is unique in the market, Multitest is able to provide
fully integrated solutions that are harmonized and optimized at the system
level.

About Everett Charles Technologies (ECT)

Since 1965, Everett Charles Technologies has taken a leadership role in the
development of advanced technology board test products holding over 100
patents. Originating with the company's signature POGO® spring contacts, ECT
has broadened its business through acquisition and managed growth to include
international manufacturing of bare board test systems and flying probe
systems, bare and loaded board fixturing and test services, and most recently,
equipment, sockets and performance boards for semiconductor test operations.
ECT's involvement in the full spectrum of test creates a unique synergy that's
unmatched in the industry. Because of the unique fixture technology
requirements of bare board and loaded board test, the company is able to apply
both hardware and software innovations initially developed for application to
the other. As a result of this integrated engineering, the company becomes
better at all facets of semiconductor and electrical test, while developing
products and technologies for specific applications.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

Any statements in this press release about future expectations, plans and
prospects for LTX-Credence, including statements about the expected timetable
for consummation of the acquisition, and any other statements about
LTX-Credence, Dover, the acquired businesses or the acquired assets, or about
LTX-Credence's future expectations, beliefs, goals, plans or prospects with
respect to the acquired businesses or the acquired assets, constitute
forward-looking statements within the meaning of the United States securities
laws, including the Private Securities Litigation Reform Act of 1995. Any
statements that are not statements of historical fact (including statements
containing the words "believes," "targets," "anticipates," "plans," "expects,"
"may," "will," "would," "intends," "estimates" and similar expressions) should
also be considered to be forward looking statements. These statements are
subject to known and unknown risks and uncertainties that could cause actual
results or events to differ materially from those indicated by such
forward-looking statements, including the parties' ability to consummate the
acquisition; the conditions to the completion of the acquisition;  the receipt
of certain customer consents required in connection with the Acquisition which
may not be obtained on the terms expected or on the anticipated schedule; the
parties' ability to meet expectations regarding the timing and completion of
the acquisition; the possibility that LTX-Credence may be unable to achieve
expected synergies and operating efficiencies within the expected time-frames
or at all or be unable to successfully integrate the acquired businesses into
its ongoing operations; the possibility that the integration of the acquired
businesses into LTX-Credence's ongoing operations may be more difficult, time
consuming or costly than expected, resulting increases in operating costs,
customer loss and business disruption (including, without limitation,
difficulties in maintaining relationships with employees, customers, clients
or suppliers); the ability of LTX-Credence to retain certain key employees
employed by the acquired businesses; as well as the other risks described in
filings by LTX-Credence with the U.S. Securities and Exchange Commission,
including those included under the heading "Risk Factors" in its Annual Report
on Form 10-K for the fiscal year ended July 31, 2012. LTX-Credence disclaims
any intention or obligation to update any forward‑looking statements as a
result of developments occurring after the date of this press release.

LTX-Credence is a trademark of LTX-Credence Corporation.
All other trademarks are the property of their respective owners.

CONTACT: Richard Yerganian, LTX-Credence Corporation
         Tel. 781.467.5063
         Email rich_yerganian@ltxc.com

LTX Credence Logo
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement