Verigy, LTX-Credence to Merge

CUPERTINO, California ( TheStreet) -- Verigy ( VRGY) , a semiconductor testing company, agreed to buy rival LTX-Credence ( LTXC).

Under the terms of the agreement, Verigy and LTX-Credence will become subsidiaries of Holdco, a newly created subsidiary, or LTX-Credence would become a unit of Verigy.

LTX-Credence shareholders will receive a fixed exchange ratio of 0.96 a share of Verigy stock.

The deal is valued at roughly between $420 million to $440 million.

"By joining forces, we expect the combined scale to strengthen our global presence" for semiconductor test systems, Verigy said in a statement Thursday.

Verigy shares closed Wednesday at $8.91; LTX-Credence shares finished at $5.98.

The companies expect the merger to close in the first half of 2011.

-- Written by Joseph Woelfel

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