Acquisition not worth the single platform dilution.

Implications: Acquisition weakens the power of Verigy's single platform strategy.  Demonstrates the failure of standalone structural test in the commercial test marketplace.  Financial terms are not disclosed, so price should be close to zero.

Analysis: Verigy no longer has a single platform solution to SOC test, and Inovys won't provide enough benefit to offset the damage to that strategy.  Standalone structural testers have not displaced conventional testers for SOC, and have been limited primarily to debugging first silicon in the lab.  As a different platform than the 93K, any application developed on the Ocelot will not even act as a feeder to the 93K production tester.  Structural test techniques are well understood, and are incorporated into all SOC testers as part of their overall test suite, so it's unlikely that Inovys brings any technology that Verigy didn't already have.