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

"[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.

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