Advantest Acquisition of Verigy

On June 10, 2011 the U.S. Department of Justice closed its investigation of Compass Lexecon client Advantest’s acquisition of Verigy, two of the three largest suppliers of automated semiconductor testing systems. Initial concern over the deal centered on significantly increased concentration and the removal of a major supplier. Advantest and Verigy maintained that the deal would benefit customers by promoting continued innovation and competition. Compass Lexecon assisted Advantest’s counsel, Alec Chang, Thomas Pak and Steven Sunshine of Skadden, Arps, Slate, Meagher & Flom, LLP, and conducted a detailed empirical analysis that combined extensive technical and industry fact gathering with detailed econometric analysis of transactions, competitive interactions, and margins. Compass Lexecon Affiliate Professor Rich Gilbert, Kevin Green and Glenn Mitchell headed up a team from the Century City and Los Angeles offices that included Aren Megerdichian, Steve Stanis, Robert Oandasan, Todd Bettisworth and Matt Kreitzberg.