H.I.G. Capital acquiring SMTC Corporation
SMTC Corporation Board of Directors has unanimously approved the Merger Agreement.
TORONTO — SMTC Corporation, an electronics manufacturing services provider, announced on Jan. 4 that it has entered into a definitive merger agreement with an affiliate of H.I.G. Capital, a leading global alternative investment firm with $42 billion of equity capital under management.
Under the terms of the Merger Agreement, an affiliate of H.I.G. will acquire all outstanding shares of SMTC Corporation’s common stock for $6.044 per share in cash, which represents a premium of approximately 22% over SMTC Corporation’s closing share price on December 31, 2020 and 66% over the share price 60 days ago. The SMTC Corporation Board of Directors has unanimously approved the Merger Agreement and recommends that the Company’s stockholders adopt the Merger Agreement.
“Over the past three years, the team at SMTC has done an excellent job of transforming the Company into a global leader among mid-size providers of end-to-end Electronics Manufacturing Services (“EMS”) by offering superior supply chain management, and proactive services and solutions to an expanding base of customers,” said Ed Smith, President and Chief Executive Officer of SMTC. “Partnering with H.I.G. will enable us to accelerate our growth through continued investment in our customers, capabilities, and footprint.”
The transaction, which is subject to the receipt of approval from SMTC’s stockholders, antitrust clearance, and other customary closing conditions, is expected to close by the second quarter of 2021.