By Kristin Jones
Teledyne Technologies Inc. /zigman2/quotes/203527738/composite TDY +0.13% has agreed to acquire LeCroy Corp. for roughly $240.6 million in cash, in a bid to extend offerings of test and measurement products.
The deal values LeCroy at $14.30, a 56% premium to its most recent closing price. The company, which last traded near the offer price in March 2011, saw its shares jump 54.8% to $14.15 in recent premarket trading.
LeCroy had roughly 16.8 million shares outstanding as of May 2, according to a regulatory filing.
Teledyne is a provider of electronic and communications products used by the aerospace and defense industries. LeCroy, which will merge with a wholly owned subsidiary of Teledyne, makes instruments that measure and analyze electronic signals.
"LeCroy will broaden our portfolio of analytical instrumentation businesses by adding a leader in electronic test and measurement solutions," said Teledyne Chief Executive Robert Mehrabian.
Mehrabian cited LeCroy's particular strength in the market for high-performance oscilloscopes, a type of measurement tool used by engineers in telecommunications and other industries.
He also said the acquisition has the potential of providing a commercial outlet for technologies and design capabilities developed by Teledyne's research and development laboratories.
The transaction also includes stock options, stock appreciation rights and net debt worth an additional roughly $50.4 million.
Teledyne shares closed at $59.84 on Friday and were inactive in premarket trading.