NORTH READING, Mass. – (BUSINESS WIRE) -Teradyne, Inc. (NYSE:TER) today announced it has signed a definitive agreement to purchase privately held LitePoint Corporation, a leading provider of production line test equipment for wireless products including smart phones, tablets and WiFi-enabled PCs, for $510 million net of LitePoint cash and tax benefits plus $70 million if certain performance targets are met extending through 2012. The acquisition has been approved by the Board of Directors of each company and is expected to close in the fourth quarter of 2011 subject to customary closing conditions and regulatory approvals.

The explosive growth of the mobile Internet will drive the number of wireless devices from 2 billion to over 3 billion by 2014. Extending from computers, smart phones and tablets to automobiles and home appliances, wireless communication networks are the fabric connecting modern society. The low-cost and high-quality test of products operating in these networks is a fundamental driver of that growth.

LitePoint provides the leading solutions for production testing of wireless products. Using easy-to-deploy, innovative test methodologies running on a software-controlled modular design, LitePoint’s IQ product line is the industry standard for high-volume, low-cost product test. LitePoint had sales of $86 million in 2010 and is projecting sales of $125-$135 million in 2011.

“We’re very pleased to be joining forces with LitePoint,” said Mike Bradley, President and CEO of Teradyne. "This acquisition provides another very significant growth engine to our business and complements our existing chip and system-level technology portfolio.”

“The combination creates unparalleled chip to system technical expertise, which will deepen and strengthen our products and support,” said Dr. Benny Madsen, Chairman and CEO of LitePoint. “Teradyne’s world-class, high-volume test expertise will be transformational to our wireless test solutions and to the industry as a whole.”