CUPERTINO, California (
) --
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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