Chip test system maker Advantest to acquire Verigy
Computer chip testing system maker Advantest Corp. said Monday it has agreed to buy all outstanding shares of Verigy Ltd. in a deal worth $1.1 billion.
"The combined company will have the ability to increase investments in innovation and remain a strong supplier to its customers, while offering enhanced long-term career opportunities for employees of both companies," Advantest's statement said.
Tokyo-based Advantest will pay $15 each for Verigy's ordinary shares, a 5.8 percent premium over its closing price in Friday. Advantest said the offer is a 64 percent premium over Verigy's closing stock price on Dec. 3, the day before Verigy announced it had received the offer.
Verigy shares rose 22 cents, or 1.6 percent, to $14.40 in pre-market trading Monday.
The deal still must be approved by Verigy shareholders and regulatory authorities.
Verigy, a Singapore maker of semiconductor test systems, had roughly 60.7 million outstanding shares as of March 1. The transaction will be structured under laws in Singapore. Verigy was spun out in 2006 from Agilent Technologies, which was once part of Hewlett-Packard Co.
Advantest has its U.S. division headquarters in Santa Clara, Calif.
On Sunday, Verigy announced it had ended an agreement to combine with rival LTX-Credence Corp., after receiving a more lucrative acquisition offer from Advantest.
As part of the termination agreement, Verigy paid $15 million to Milpitas, Calif.-based LTX-Credence, which makes several chip testing platforms.