Nextest Systems soars on buyout news
Nextest Systems Corp. (Nasdaq: NEXT) shares are soaring in morning trading after test equipment maker Teradyne Inc. (NYSE: TER) said it will buy the San Jose, Calif.-based company for $20 per share, or about a 67% premium over Tuesday’s closing price. The $325 million cash deal is expected to close during the three months of 2008.
"Teradyne's rich experience as a technology innovator, along with their strong customer relationships, will greatly accelerate our mission to lower test costs and to grow our business," Nextest CEO Robin Adler said in a statement. "We are very excited about the impact, potential and opportunity this combination provides to our employees, our stockholders, and most importantly, our customers."
Nextest, which had $95.8 million in revenue during 2006, makes test products for flash memory chips. Teradyne said it expects the acquisition to reduce 2008 earnings. The deal is pending approval by both companies’ boards.
In morning trading, NEXT shares are flying high — up 63.55%, or $7.62, at $19.61. Over the last 52 weeks, shares have ranged from $10.49 to $19.64.
