Advantest closes acquisition on renegotiated terms

14th February 2019
Mick Elliott

Semiconductor test equipment supplier Advantest has closed its acquisition of the commercial Semiconductor System Level Test business (“Test Systems”), from Astronics on renegotiated terms due to a change in business conditions related to the semiconductor industry and Test Systems business.

The new terms include an upfront purchase price of $100 million, plus an earn-out payment of up to $35 million based on certain performance milestones. This compares to the previously announced $185 million purchase price, plus an earn-out payment of up to $30 million based on certain performance milestones.

Test Systems is highly complementary to Advantest’s existing suite of leading-edge automated test equipment (ATE) solutions and broadens Advantest’s position in system level test, an increasingly critical test modality to large consumer electronics manufacturers.

Regardless of the changes of Test Systems’ near term business performance forecast affected by recent semiconductor industry business condition, we still believe that Test Systems business is strategically important and the expectation for the growth in mid-long term remains unchanged.

The transaction reinforces Advantest’s commitment to expanding test and measurement solutions throughout the semiconductor value chain.

“We will be able to offer stronger solutions to our diversified customer base and continue to add significant customer value in an evolving semiconductor value chain by further enriching and expanding our suite of test and measurement solutions,” said Yoshiaki Yoshida (pictured), Advantest President and Chief Executive Officer. "With this acquisition, Advantest will benefit greatly from Test Systems’ technology development capabilities, technical talent and recent customer successes in this emerging segment of test. The acquisition will allow us to better and more timely respond to the growing needs of our semiconductor customers, and we believe Test Systems will benefit greatly from Advantest’s global footprint, customer base and resources. We look forward to making significant advances in developing new solutions with Test Systems to deliver significant value to customers, employees and shareholders."

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