SigmaTron International (SGMA) shares were 127% higher premarket Wednesday after the company said it agreed to be acquired by an affiliate of middle-market private equity firm Transom Capital Group for $3.02 per share in cash or a total enterprise value of about $83 million.
The Transom affiliate will launch a tender offer to acquire all outstanding SigmaTron shares, the company said, adding that the purchase price represents a premium of about 134% over its closing market price on Tuesday.
The company said that after the anticipated completion of the deal in Q3, it will be wholly-owned by Transom and its shares will no longer be listed on Nasdaq.
SigmaTron also said that after the tender offer closes, a Transom affiliate will acquire any of its shares not tendered in the tender offer via a second-step merger for the same purchase price.