Teradyne has signed an agreement to purchase Universal Robots (UR), the world’s leading maker of collaborative robots (cobots), based in Odense, Denmark. Cobots are low-cost, easy-to-deploy, simple-to-program robots that work side by side with production workers to improve quality and increase manufacturing efficiency. They automate tasks including machine tending, packaging, gluing, painting, polishing and assembling parts and are deployed in the automotive, food and agriculture, furniture and equipment, metal and machining, plastics and polymers, and pharma and chemicals industries.

Teradyne will provide revenue synergies, financial strength and global reach that will help accelerate Universal Robots growth. The acquisition provides Teradyne early access in an emerging market on the cusp of rapid growth.

Collaborative robotics is a $100 million segment of the industrial robotics market growing at more than 50% per year. Universal Robots is the leader in this segment and has shipped more than 4,000 cobots to date.

We expect the transaction to close later in the second quarter. Once the transaction is completed, UR will operate as an independent business unit while leveraging Teradyne’s scale and global footprint to accelerate their growth.