Teradyne has signed a definitive agreement to purchase privately held LitePoint, a provider of production line test equipment for wireless products including smart phones, tablets and WiFi-enabled PCs, for $510 million net of LitePoint cash and tax benefits plus $70 million if certain performance targets are met extending through 2012.

The acquisition is expected to close in the fourth quarter of 2011 subject to customary closing conditions and regulatory approvals. LitePoint had sales of $86 million in 2010 and is projecting sales of $125-$135 million in 2011. The company is based in Sunnyvale, California The revenue of Teradyne in 2010 was $1.6 billion with a net income of $379.7 million.