Astronics Corp., East Aurora, N.Y., announces an agreement to sell the intellectual property and certain assets associated with its semiconductor test business to Advantest Corp., Tokyo, for $185 million in cash. The sale includes a $30 million earn-out opportunity based on achieving certain levels of revenue in 2019. Upon closing, Astronics will also enter into an agreement with Advantest to continue making the products.
According to Peter Gundermann, President and CEO of Astronics, “We acquired this product line in January of 2014 and it has since generated about $365 million in revenue through the third quarter this year. We have invested heavily in the technology and will continue to be involved as a manufacturing partner with Advantest.”
Approximately 45 personnel from Astronics, primarily in engineering, sales, and program management, will be offered positions with Advantest. The remainder of the Astronics workforce will be unaffected by the transaction.
The transaction is s expected to close by the end of the year, subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.
Astronics’ will continue to operate its aerospace and defense test business and report in two segments.
