Advantest Acquires Verigy For $1.1 Billion (VRGY, TER, LTXC)

Advantest Corp. has reached a deal to acquire Verigy Ltd. VRGY for $1.1 billion. Advantest will purchase all shares of Verigy for $15 a share, using all cash. Advantest is the second-largest maker of semiconductor-testing equipment in the world. This deal with Verigy, pending shareholder approval, would be Advantest's largest acquisition to date. The deal would also make Avantest the world's largest maker of semi-conductor testing equipment. The current largest maker is Teradyne Inc. TER. The acquisition will not only increase Advantest's global presence, but also add to Advantest's expertise, as Verigy specializes in non-memory chip testing machines. Verigy was in talks with LTX-Credence Corp LTXC to create a merger, but broke off the agreement Sunday when Advantest offered its acquisition terms. Verigy paid $15 million to LTX-Credence in a termination agreement. Verigy closed at $14.18 on Friday and is currently trading at $14.23.