DDL to acquire Century Electronics
NEWBURY PARK, Calif., May 30 (Reuter) - DDL Electronics Inc said on Friday that it has agreed to acquire Century Electronics Manufacturing Inc, a Massachusetts-based contract electronics maker, for 33 million of its shares.
At DDL's closing price of 1-5/8 on Thursday, the deal would be valued at over $53.6 million. In addition, Century will retire $3.3 million of DDL's short-term debt by June 27.
For the quarter ended March 31, Century, which is majority-owned by Centennial Technologies Inc, generated $24.6 million in revenue. Combined, the two companies will generate $150 million in annual revenues, DDL said in a statement.
In the March quarter, Century earned $236,000 before taxes.
The merger is expected to close in September and is subject to completion of a definitive agreement and other conditions. The merger will be accounted for as a purchase.
``We believe that this will be a highly synergistic merger because our two companies have complementary strengths and management teams,'' said Gregory Horton, DDL chief executive officer.
DDL is an independent provider of electronic manufacturing services for electronic equipment manufacturers. DDL also makes printed circuit boards for use primarily in the computer, communications and instrumentation industries.
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So, Lee; they didn't mention merger,huh? |
