
Credence and LTX have announced plans to combine operations in a
tax-free, all-stock merger. Credence shareholders will own 50.02
percent of the outstanding shares of the combined company and LTX
shareholders will own 49.98 percent.
"I am very excited about joining forces with LTX. This merger, from a
technical and business point of view, represents the logical next step
for both companies' long-term growth," said Lavi Lev, President and CEO
of Credence. "We believe the combined strength of our technical
expertise in RF, digital, mixed-signal and analog, coupled with a
complementary product portfolio, will benefit our customers as they
test and deploy high volume, highly integrated devices into their
respective market segments. From a business perspective, the merger
broadens our customer base and provides a strong opportunity for
growth."
"The
technical and business challenges faced by our customers continue to
intensify as time to market shrinks and margins are pressured by
demands for new features at lower prices," noted David Tacelli, CEO and
President of LTX. "Now more than ever, it is vital we deliver cost
optimized test solutions focused on our customers' specific
technologies, product mix and device volume levels. We believe the
timely merger of Credence and LTX enables us to build a test company
with the financial strength, growth opportunities, critical mass, and
operational efficiency to lead the industry as it faces these
challenges."
Lavi Lev, President and CEO of Credence, is
expected to become Executive Chairman of the combined company, though
only for a transitional period following the merger, according to a
press statement. David Tacelli, CEO and President of LTX, will become
CEO and President, and Mark Gallenberger, CFO and Vice President of
LTX, will become CFO.