Astronics Corporation Completes the Sale of its Semiconductor System Level Test Technology

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East Aurora, NY | February 14, 2019–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.”

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