v3.26.1
Acquisitions
 6 Months Ended
Jun. 28, 2026
Business Combinations [Abstract]  
Acquisitions

D. ACQUISITIONS

MultiLane Test Products

On April 8, 2026, Teradyne and HTP Holding SAL (“MultiLane”) formed a joint venture, MultiLane Test Products Holding LLP (“MLTP”), in which Teradyne holds a controlling 75% ownership interest, with the remaining 25% attributable to noncontrolling interests, for a total purchase price of $157.8 million, subject to customary post-closing adjustments. MLTP is expected to serve the growing demand from the AI Data Center equipment market by accelerating the development of test solutions for critical high speed data connections. The fair value of the noncontrolling interests was estimated to be $35.8 million based on the noncontrolling interest holders’ proportionate ownership of MLTP, adjusted to reflect the lack of control and marketability characteristics of the interest. Teradyne’s total allocation of the purchase price was goodwill of $131.6 million, which is not deductible for tax purposes, acquired intangible assets of $46.7 million with a weighted average estimated useful life of 4.7 years, and $15.3 million of net tangible assets. The goodwill is attributable to cost synergies, assembled workforce and anticipated incremental revenue streams. Teradyne’s estimates, assumptions, and tax impacts used in determining the estimated fair values of certain assets, liabilities, and the noncontrolling interests are subject to change within the measurement period (up to twelve months from the acquisition date) as a result of additional information obtained with regards to facts and circumstances that existed as of the acquisition date. The results of MLTP have been included in Teradyne’s Product Test segment from the date of acquisition.


Based upon a preliminary valuation, the total purchase price was allocated as follows:

 

 

Purchase Price Allocation

 

 

 

(in thousands)

 

Goodwill

 

$

131,634

 

Intangible assets

 

 

46,700

 

Tangible assets acquired and liabilities assumed:

 

 

 

Current assets

 

 

23,616

 

Other non-current assets

 

 

790

 

Accounts payable and current liabilities

 

 

(980

)

Long-term deferred tax liabilities

 

 

(7,939

)

Other long-term liabilities

 

 

(183

)

Noncontrolling interests

 

 

(35,799

)

Total purchase price

 

$

157,839

 

 

Teradyne estimated the fair value of intangible assets using the income approach. The fair value of developed technology was estimated using the Multi-Period Excess Earnings Method. Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives. Components of these intangible assets and their estimated useful lives at the acquisition date are as follows:

 

 

 

Fair Value

 

 

Estimated Useful Life

 

 

 

(in thousands)

 

 

(in years)

 

Developed technology

 

$

40,900

 

 

 

4.0

 

Customer relationships

 

 

5,800

 

 

 

10.0

 

Total Intangible assets

 

$

46,700

 

 

 

4.7

 

 

Teradyne has not separately disclosed MLTP’s standalone contribution to total company revenue or income from operations before income taxes or pro forma financial information as the impact of the acquisition on the condensed consolidated financial statements is not material.
 

Quantifi Photonics

On May 31, 2025, Teradyne acquired all of the issued and outstanding shares of Quantifi Photonics (“Quantifi”), a privately held company in New Zealand and a leader in photonic integrated circuit (“PIC”) test solutions for a total purchase price of $127.2 million. The acquisition of Quantifi enables Teradyne to deliver scalable PIC test solutions. Teradyne’s allocation of the purchase

price was goodwill of $83.1 million, which is not deductible for tax purposes, acquired intangible assets of $43.6 million with a weighted average estimated useful life of 10.0 years, and $0.6 million of net tangible assets. The goodwill is attributable to cost synergies, assembled workforce and anticipated incremental revenue streams. The fair values of the tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The results of Quantifi have been included in Teradyne’s Product Test segment from the date of acquisition.

The total purchase price was allocated as follows:

 

 

 

Purchase Price Allocation

 

 

 

(in thousands)

 

Goodwill

 

$

83,068

 

Intangible Assets

 

 

43,600

 

Tangible assets acquired and liabilities assumed:

 

 

 

Current assets

 

 

6,148

 

Long-term deferred tax assets

 

 

6,271

 

Other non-current assets

 

 

2,516

 

Accounts payable and current liabilities

 

 

(1,609

)

Long-term deferred tax liabilities

 

 

(12,208

)

Other long-term liabilities

 

 

(548

)

Total purchase price

 

$

127,238

 

Teradyne estimated the fair value of intangible assets using the income and cost approaches. The fair value of developed technology was estimated using the Multi-Period Excess Earnings Method. Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives. Components of these intangible assets and their estimated useful lives at the acquisition date are as follows:

 

 

 

Fair Value

 

 

Estimated Useful Life

 

 

 

(in thousands)

 

 

(in years)

 

Developed technology

 

$

38,600

 

 

 

10.0

 

Trademarks and tradenames

 

 

4,400

 

 

 

10.0

 

Customer relationships

 

 

600

 

 

 

8.0

 

Total Intangible Assets

 

$

43,600

 

 

 

10.0

 

Teradyne has not separately disclosed Quantifi’s standalone contribution to total company revenue or income from operations before income taxes or pro forma financial information because the impact of the acquisition on the condensed consolidated financial statements is not material.

Automated Test Equipment Technology

On January 31, 2025, Teradyne acquired from Infineon Technologies AG (“Infineon”) its automated test equipment technology and associated development team (“AET”) based in Regensburg, Germany for a total purchase price of 17.6 million Euros, equivalent to $18.3 million, subject to customary adjustments. AET adds resources and expertise to Teradyne and strengthens the relationship between Teradyne and Infineon. The AET acquisition was accounted for as a business combination and, accordingly, the results have been included in Teradyne’s Semiconductor Test segment from the date of acquisition. As of the acquisition date, Teradyne’s purchase price allocation was goodwill of $1.3 million for expected synergies from combining operations, acquired intangible assets of $6.4 million, consisting of developed technology and customer relationships, with a weighted average estimated useful life of 4.6 years, and $10.7 million of net tangible assets, including $11.7 million of inventory. The fair values of the tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The acquisition was not material to Teradyne’s condensed consolidated financial statements.