Teradyne announced its acquisition of GenRad on August 2, 2001, in a stock transaction valued at $260 million, including GenRad debt. The deal closed on October 26, 2001. It expanded Teradyne’s circuit-board testing and inspection business by adding GenRad’s in-circuit, functional, optical and X-ray systems.
What did Teradyne acquire GenRad for?
Teradyne announced a stock transaction valued at $260 million. That headline value included approximately $85 million of GenRad debt, according to the companies’ 2001 announcement as reported by EE Times. The $260 million was therefore not simply a cash payment to GenRad shareholders.
Teradyne’s later SEC filing provides the closing mechanics: each GenRad share was exchanged for 0.1733 Teradyne shares, and Teradyne issued approximately 5.0 million common shares. It also reported that approximately $89.7 million of debt was assumed and repaid at closing. Those closing figures differ from the announcement’s approximate $85 million debt estimate because they describe the completed transaction rather than the initial announcement. See Teradyne’s 2003 Form 10-K, filed in 2004.
Why did Teradyne buy GenRad?
The acquisition broadened Teradyne’s equipment and software offering for testing and inspecting printed circuit-board assemblies. Teradyne already had board-test products; GenRad brought complementary in-circuit and functional test systems, automated optical inspection and X-ray inspection. Teradyne also pointed to factory-automation software for deploying equipment and managing manufacturing processes.
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At announcement, Teradyne chairman, president and CEO George W. Chamillard described the goal as creating a broad range of circuit-board test and inspection products, spanning in-circuit and functional testing as well as optical and X-ray inspection. The companies presented the expanded range as a way to serve customers across more stages of board production, rather than as a purchase of one standalone product line.
GenRad’s retained business units had generated $255 million in revenue in the prior year, according to the 2001 announcement reported by EE Times. That is a historical revenue figure for the businesses Teradyne planned to retain, not a current market-size estimate.
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When did the deal close?
The agreement was announced on August 2, 2001, but the acquisition was not completed that day. It closed on October 26, 2001, after shareholder and regulatory approvals. Teradyne’s announcement of the completed transaction and the resulting business treatment were reported by EE Times; the SEC filing supplies the final exchange and debt figures.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How were GenRad’s businesses handled?
Teradyne integrated GenRad’s retained process, functional-test and support operations into its Assembly Test organization. Diagnostic Solutions was handled separately rather than folded into the retained assembly and circuit-board test business. This distinction matters: the acquisition’s stated product expansion describes the retained business that fit Teradyne’s assembly-test strategy, not every GenRad operation as a single continuing unit.
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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Teradyne’s stated rationale was to extend its reach and product breadth in the global circuit-board inspection and test market. The transaction’s structure, closing date and business integration show how it pursued that strategy: an all-stock exchange for shareholders, debt assumed and repaid at closing, and integration of the relevant operations into Assembly Test.
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