Data I/O Closes $23M V-TEK Acquisition, Funded by $13.25M Convertible Private Placement
DAIO is trading near its 52-week low of $2.16 (14% above the low) on elevated volume (1.9× avg).
Summary
Data I/O completed its $23 million acquisition of V-TEK and A&J Programming, funded partly by a $13.25 million private placement of stock and 5% convertible debentures priced at $2.68 per share.
Key Events · M&A and Partnerships · DAIO
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V-TEK Acquisition Closed
Data I/O completed the purchase of V-TEK, Inc. and A&J Programming, Inc. for $23.0 million — $20.0 million cash and $3.0 million in common stock valued at $2.68 per share — with $1.3 million of the price held in escrow for indemnification.
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Private Placement Funded the Deal
A $13.25 million private placement closed October 20, 2026, consisting of 746,266 common shares and $11.25 million of 5% convertible debentures, both at a $2.68 conversion price; net proceeds fund the acquisition and working capital.
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Shareholder Vote Required
Absent shareholder approval, conversion is capped at 209,907 shares; the company must hold a special meeting within 120 days or the note interest rate rises to 8% (18% on default).
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Placement Agent Fees
Ladenburg Thalmann receives a 7.0% cash fee, a 1.0% management fee and up to $75,000 in expense reimbursement on the placement.
Analysis · DAIO · Industrial Applications And Services
Data I/O has closed the V-TEK/A&J acquisition it announced October 19, paying $23.0 million — $20.0 million in cash plus $3.0 million in stock at $2.68 per share — and funded the cash portion with a $13.25 million private placement of common stock and 5% convertible debentures struck at the same $2.68 price. Management says the combined company more than doubles revenue and diversifies away from cyclical capital equipment. The cost is real: the debentures convert into common or Series C preferred at $2.68, and without shareholder approval the company can issue only 209,907 conversion shares, so a special meeting must be held within 120 days or the interest rate steps up to 8%. The notes also carry escalating coupons (5% rising a point each anniversary, 18% on default) and restrict further variable-rate financings for six months. With the stock at $2.465 today versus the $2.68 deal price, the conversion terms sit modestly above the current market.
How filings like this one have moved
In the 30 days to Oct 22, 2026, 36.8% of the 1016 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.75%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, DAIO was trading at $2.47 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $25.6M. The 52-week trading range was $2.16 to $4.49. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.