Data I/O Signs Definitive Deals to Buy V-TEK and A&J Programming
DAIO sits 19% above its 52-week low of $2.16.
Summary
Data I/O signed definitive agreements to acquire V-TEK and A&J Programming, two bolt-on buys announced via Dow Jones Newswires, with a total purchase price of $23M paid in a combination of cash and Data I/O common stock. The timing is notable: it lands the same day the company is raising roughly $13.25M in convertible subordinated debentures and common stock, and follows a Q2 where revenue was just $5.2M with an unremediated material weakness in internal controls. For a company this small, even a modest deal is significant, and with the price now known traders can begin to size the dilution and integration risk. Watch for the 8-K with further deal terms and any financing details tied to the acquisitions.
At the time of this announcement, DAIO was trading at $2.58 on NASDAQ in the Technology sector, with a market capitalization of approximately $26.8M. The 52-week trading range was $2.16 to $4.49. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.