Giga-tronics Incorporated, a leading provider of test and measurement equipment, announced that it has entered into an Asset Purchase Agreement with Teradyne, Inc. ("Teradyne"), of North Reading, Massachusetts, pursuant to which it agreed to sell to Teradyne its product line known as SCPM for approximately $1,000,000. The closing of the sale is expected to occur on or about April 1, 2013.
The assets that are the subject of the transaction consist of certain intellectual property and proprietary information related to the SCPM product line, remaining inventory and test equipment. Certain proprietary information also used by the Company in its non-SCPM business will be licensed to Teradyne for use in the SCPM business. The Company will provide training to Teradyne personnel to enable Teradyne to operate the transferred business independently.
Giga-tronics Chief Executive Officer, John Regazzi, commented, "This transaction will strengthen the relationship between our two Companies while, at the same time, providing Giga-tronics additional working capital for new product development."
At closing, the parties will enter into a related Transition Services Agreement pursuant to which the Company will provide certain support services, including training, warranty service, text fixture duplication and related support through the end of 2013.