29 May 2012

Teledyne to acquire LeCroy for $291m

Teledyne Technologies Inc of Thousand Oaks, CA, USA has entered into a definitive agreement for the merger of LeCroy Corp of Chestnut Ridge, NY, USA with a subsidiary of Teledyne.

Founded in 1964, LeCroy is a supplier of oscilloscopes, protocol analyzers and signal integrity test solutions, with about 500 staff. For its fiscal year ended 2 July 2011, sales were $178.1m. Teledyne designs and manufactures instrumentation, digital imaging products and software, aerospace & defense electronics, and engineered systems. operations are primarily located in the USA, Canada, the UK and Mexico, primarily in the USA, the UK and Mexico.

Teledyne will acquire all of the outstanding common shares of LeCroy for $14.30 per share payable in cash. The aggregate value for the transaction is about $291m, taking into account LeCroy’s stock options, stock appreciation rights and net debt as of 31 March. The transaction was unanimously approved by the boards of directors of both firms. In addition, LeCroy’s directors and executive officers, including founder Walter LeCroy, have agreed to vote their shares in favor of the transaction.

“LeCroy will broaden our portfolio of analytical instrumentation businesses by adding a leader in electronic test & measurement solutions,” says Teledyne’s chairman, president & CEO Dr Robert Mehrabian. He also highlights LeCroy’s strength in the market for high-performance oscilloscopes, as well as the potential for LeCroy to provide a commercial outlet for Teledyne’s unique indium phosphide (InP) process technology and ultra-high-frequency mixed signal design capabilities developed at its R&D laboratories (Teledyne Scientific Company).

“This transaction provides a substantial premium for our shareholders,” notes LeCroy’s president, CEO & director Thomas Reslewic. “Teledyne can help us accelerate our high-end oscilloscope programs to deliver real-time bandwidth well beyond 100GHz by utilizing Teledyne’s leading InP technology,” he adds. “Furthermore, through a combination of Teledyne’s microwave and mixed-signal design capabilities with LeCroy’s signal processing expertise, as well as our respective market channels, we envision growing our markets and adding new products such as signal generators and multi-function instruments.”

Tags: Teledyne InP

Visit: www.teledyne.com

Visit: www.lecroy.com