Teradyne Unit Fetches $390M

Teradyne is selling its connection systems division to
Amphenol Corp. for $390 million in cash, the companies
announced today.

Teradyne Connection Systems (TCS) makes high-speed, high-density printed
circuit board interconnection products for the data communications and
storage market. Its customers include Alcatel , Cisco , Ericsson and Lucent .

“[Teradyne Connection Systems] is a perfect strategic fit,” Martin H.
Loeffler, Amphenol chairman and CEO, said in a conference call with
reporters and analysts. “There is no product overlap.”

While TCS components link systems within computers, Amphenol’s electronic
and fiber-optic cable and systems connect computers and peripherals to each
other.

Loeffler added that the companies share many of the same customers, and the
combination of the firms will allow Wallingford, Conn.-based Amphenol to
offer a complete line of connection products.

Nashua, N.H.-based TCS employs 2,250 people at manufacturing facilities and
offices in China, Malaysia, Mexico and the United States. TCS will run as a
standalone unit by its current management team, Loeffler said.

Amphenol CFO Diana Reardon said she expects the acquisition to close during
the fourth quarter pending regulatory approval and contribute to the
company’s earnings within a year.

TCS has annual revenues of approximately
$380 million.