Filing Flows › Teradyne (TER) › Takeover & LBO
Is Teradyne (TER) a takeover target?
A leveraged buyout at today's price plus 30% ($281.91 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $160.01 a share (−26% against today's $216.85). Historically 2.6% of companies with its figures were bought within a year (0.51× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $281.91 | today's $216.85 plus 30% |
| × shares | 157.5 million | |
| = Equity value | $44.4B | |
| + Debt refinanced | $0 | |
| − Cash | $461M | |
| + Other claims | $36.2M | preferred stock, minority interests |
| = Enterprise value | $44.0B | 25.2× EBITDA of $1.7B |
| Fees | $880M | 2% of the price |
| New debt | $9.6B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $35.3B | 79% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $5.4B | $1.9B | $734M | $645M | $9.0B |
| Year 2 | $5.8B | $2.0B | $685M | $781M | $8.2B |
| Year 3 | $6.1B | $2.1B | $625M | $914M | $7.3B |
| Year 4 | $6.3B | $2.2B | $555M | $1.0B | $6.2B |
| Year 5 | $6.5B | $2.3B | $475M | $1.2B | $5.0B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 19.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $44.1B | |
| − Debt left | $5.0B | |
| = Buyer's equity | $39.0B | |
| Money multiple | 1.11× | on $35.3B put in |
| Buyer's yearly return (IRR) | 2.0% |
Price against return
What the buyer makes at other premiums over today's $216.85; the IRR reaches 20% at $160.01 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $238.54 | 6.6% |
| 20% | $260.22 | 4.2% |
| 30% | $281.91 | 2.0% |
| 40% | $303.59 | 0.1% |
| 50% | $325.27 | −1.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $5.0B | |
| EBITDA, last 12 months | $1.7B | 34.9% of revenue |
| Depreciation and amortization | $139M | |
| Capital spending | $305M | |
| Debt | $0 | |
| Cash | $461M | |
| Share price | $216.85 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 14% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Teradyne would cost about $303.59 a share, $47.8B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $248.73 | $39.2B |
| Median | 40% | $303.59 | $47.8B |
| High end (a quarter paid more) | 60.2% | $347.39 | $54.7B |
The odds, from history
Historically 2.6% of companies with its figures were bought within a year (0.51× the average). Its figures put it in decile 2 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Teradyne's latest quarter
Teradyne, Q3 2026: revenue $1.3B (+70% year over year), operating margin 30.8%, net earnings $342M, operating cash flow $314M. The chart follows the revenue to costs, profit and cash.
Questions
Is Teradyne being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Teradyne?
A leveraged buyout at today's price plus 30% ($281.91 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $160.01 a share (−26% against today's $216.85).
What would a takeover of Teradyne cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Teradyne would cost about $303.59 a share, $47.8B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.