Teradyne Inc. on Wednesday agreed to buy Universal Robots for $285 million in cash, in a move to expand its business with the low-cost collaborative robots.

Universal Robots is a privately held Danish company that makes simple robots that usually work alongside production workers in the manufacturing process. It has been profitable since late 2010 and had $38 million in revenue in 2014, increasing more than 70% from the year before. Universal Robots is eligible to receive an additional $65 million if certain goals are met...