Test instrument supplier LeCroy Corp is to acquire Computer Access Technology Corp. in a stock transaction valued at $81 million, plus options.
Under the terms of the deal, LeCroy will acquire all of the outstanding common stock of CATC for $6.00 per share. With the addition of other options, LeCroy expects the total purchase price of the transaction to be approximately $85 million, excluding CATC’s $45 million of cash and investments.
Chestnut Ridge, New Jersey-based LeCroy intends to fund the $81 million initial purchase price via a combination of its existing cash and $50 million of term debt. Subject to the usual closing conditions, the transaction is expected to close by the end of the year.
CATC provides the computer and data storage markets with solutions for testing and verifying serial data communications protocols. For the year ending June 30, it reported $17.7 million in revenue.
The transaction will enable LeCroy to capitalize on the surging demand for serial data test instruments and strengthen its position in the data storage market.
CATC president and CEO Carmine Napolitano will join LeCroy’s executive management team as president of the new Serial Data Solutions Division.