Astronics Corporation Completes the Sale of its Semiconductor System Level Test Technology
February 14 2019 - 6:30AM
Business Wire
Astronics Corporation (Nasdaq:ATRO), a leading provider of
advanced technologies for the global aerospace, defense, and
semiconductor industries, announced today that it has closed the
previously announced sale of the intellectual property and certain
assets associated with its semiconductor test product line to
Advantest Corporation (TSE: 6857).
The terms of the transaction were renegotiated due to a change
in business conditions related to the product line. The new terms
include an upfront payment of $100 million in cash, plus a
potential earn-out payment of up to $35 million based on certain
performance milestones over the next 4 years. This compares with
the previously announced $185 million purchase price, plus an
earn-out payment of up to $30 million based on certain performance
milestones. The renegotiated sales agreement does not include a
manufacturing service contract as previously announced.
Peter J. Gundermann, President and CEO of Astronics, commented,
“We have strong confidence in Advantest’s ability to further the
adoption of these solutions across the semiconductor industry and
expect that the team and competencies we have developed will
achieve new highs under their ownership. We will continue to
develop and advance our aerospace & defense test solutions
while employing our multi-system test software capabilities in a
variety of applications.”
ABOUT ASTRONICS CORPORATION
Astronics Corporation (Nasdaq:ATRO) serves the world’s
aerospace, defense and semiconductor industries with proven,
innovative technology solutions. Astronics works
side-by-side with customers, integrating its array of power,
connectivity, lighting, structures, interiors, and test
technologies to solve complex challenges. For 50
years, Astronics has delivered creative, customer-focused
solutions with exceptional responsiveness. Today, global airframe
manufacturers, airlines, military branches, completion centers, and
Fortune 500 companies rely on the collaborative spirit and
innovation of Astronics.
For more information on Astronics and its solutions,
visit Astronics.com.
SAFE HARBOR STATEMENT
This news release contains forward-looking statements as defined
by the Securities Exchange Act of 1934. One can identify these
forward-looking statements by the use of the words “expect,”
“anticipate,” “plan,” “may,” “will,” “estimate” or other similar
expressions. Because such statements apply to future events, they
are subject to risks and uncertainties that could cause actual
results to differ materially from those contemplated by the
statements. Important factors that could cause actual results to
differ materially from what may be stated here include the duration
of the transition services agreement, the future success of the
test technology, the opportunities with the aerospace & defense
test business, the applications of the multi-system test software
capabilities, the state of the aerospace & defense industries,
the market acceptance of newly developed products, internal
production capabilities, the timing of orders received, the status
of customer certification processes and delivery schedules, the
demand for and market acceptance of new or existing aircraft which
contain the Company’s products, the need for new and advanced test
and simulation equipment, customer preferences and other factors
which are described in filings by Astronics with the Securities and
Exchange Commission. The Company assumes no obligation to update
forward-looking information in this news release whether to reflect
changed assumptions, the occurrence of unanticipated events or
changes in future operating results, financial conditions or
prospects, or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20190214005095/en/
CompanyDavid C. BurneyChief
Financial Officer, Astronics
Corporationdavid.burney@astronics.com+1.716.805.1599
Investor RelationsDeborah K.
PawlowskiInvestor Relations, KEI Advisorsdpawlowski@keiadvisors.com+1.716.843.3908
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