Data I/O Completes Transformational Acquisition of V-TEK, Anticipated to Double Revenue

The purchase combines $20 million in cash with $3 million in common stock, adding programming services and semiconductor handling capabilities.

Rhea-AI Summary

Data I/O (NASDAQ: DAIO) completed its acquisition of V-TEK and A&J Programming for approximately $23 million in total consideration. The purchase comprised $20 million in cash and $3 million in Data I/O common stock. Part of the cash consideration came from the private placement announced on October 19, 2026.

Data I/O expects the acquisition to double revenue and be accretive to existing operations. The company expects broader revenue sources to reduce reliance on automotive and cyclical capital equipment markets, while accelerating Programming-as-a-Service. The acquired businesses add semiconductor handling, test and packaging capabilities and programming services. Data I/O also anticipates sales and operating synergies and margin improvements over time from lower-cost domestic manufacturing. V-TEK will operate as a subsidiary; its president, Mitch Jacobs, becomes Data I/O's senior vice president.

8 points · 2 major

PositiveiHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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1 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointCompleted V-TEK and A&J Programming acquisition adds semiconductor handling, test, packaging and programming services.
• Major point. Forward-looking: it has not happened yet and may not happen.Data I/O expects the acquisition to double revenue and be accretive to existing operations.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Data I/O expects revenue diversification to reduce reliance on automotive and cyclical capital equipment markets.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Data I/O anticipates operating leverage and lower-cost domestic manufacturing to improve margins over time.
• Minor point. Forward-looking: it has not happened yet and may not happen.V-TEK's programming business supports Data I/O's planned acceleration of Programming-as-a-Service.

3 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Data I/O expects software and services to play a larger role in next year's growth plan.
• Minor point. Forward-looking: it has not happened yet and may not happen.Data I/O anticipates sales synergies across revenue lines and channel partners.
• Minor point. Forward-looking: it has not happened yet and may not happen.Data I/O plans continued investment in automation solutions for programming and test.

Negative

• Major pointAcquisition cash consideration required $20 million, partly funded by a private placement. 75% of market cap
• Minor pointAcquisition consideration included $3 million in Data I/O common stock, diluting existing holders.

News Explained

The CEO says the completed acquisition has already more than doubled Data I/O’s consolidated revenue, while the headline describes doubling as anticipated.

Key Figures

Total consideration: Approximately $23 million Cash consideration: $20 million Stock consideration: $3 million +1 more

Total consideration

Approximately $23 million

V-TEK and A&J Programming acquisition

Cash consideration

$20 million

Acquisition payment

Stock consideration

$3 million

Data I/O common stock included in acquisition payment

Revenue scale

More than doubled

Consolidated revenue, as stated following the acquisition

Previous Acquisition Reports

2 past events · Latest: Oct 19

Same Type 2 events

1. Oct 19

   Acquisition agreement

   24h Move

   -2.3%

   Signed a definitive agreement for the V-TEK and A&J Programming acquisition; closing was still pending.

2. May 14

   Acquisition announcement

   24h Move

   +10.0%

   Announced a letter of intent for the same acquisition, targeting nearly doubled annual revenue.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

accretive, private placement, m&a

3 terms

accretive financial

"The acquisition is expected to be accretive to our existing operations."

"Accretive" describes a situation where a financial action, such as a purchase or investment, increases the value or earnings of a company. For investors, it signals that the move is likely to boost profitability and overall worth, much like adding a beneficial ingredient to a recipe that enhances the final taste. An accretive decision is generally seen as positive because it contributes to growth and financial health.

private placement financial

"A portion of the cash consideration came from the closing of the private placement"

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

m&a financial

"StoneX Financial Inc. served as M&A advisor to the Company"

M&A, short for mergers and acquisitions, involves one company combining with or purchasing another company to grow, streamline operations, or gain competitive advantages. For investors, M&A activity can signal potential for increased value, new opportunities, or changes in market dynamics, making it an important factor to watch in the business landscape.

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Accretive Acquisition Adds Multiple New Markets and Significant Acceleration of Programming-as-a-Service Offering

REDMOND, Wash., Oct. 21, 2026 (GLOBE NEWSWIRE) -- Data I/O Corporation (NASDAQ: DAIO) (the “Company”), the leading global provider of data programming equipment, provisioning services and security provisioning for Flash-based microcontrollers, and high density memory devices, today announced that it has completed its previously announced transformational acquisition of V-TEK, Inc. and A&J Programming, Inc. (collectively, “V-TEK”), leading manufacturers of semiconductor handling automation for test and packaging solutions based in Mankato, MN.

“Closing this acquisition marks the first significant milestone set two years ago to expand markets we serve and expand the lines of revenue to make Data I/O a more resilient, profitable and growth-oriented company. The NEW Data I/O becomes real and is materially impactful to its financial performance and growth outlook,” said William Wentworth, President and CEO of Data I/O Corporation. “The acquisition is expected to be accretive to our existing operations. With the acquisition of V-TEK, we will diversify our revenue streams, reducing our reliance on the cyclical nature of the capital equipment markets. We have minimized our reliance on the automotive industry, more than doubled our revenue consolidated, which expands Data I/O into markets such as data center, AI, photonics, industrial automation, medical, military, aerospace and defense. We will continue to innovate and invest in new automation solutions for programming and test. V-TEK’s existing programming business let us accelerate Programming-as-a-Service. Just as important, we are shifting revenue mix adding software and services, which will play a more significant role in next year’s growth plan.”

“We are proud of what the V-TEK team has built, and we believe Data I/O is the right partner to take the business to its next stage,” said Bill Karol on behalf of the selling ownership group. “Our decision to take up to $3 million of the purchase price in Data I/O stock, reflects our conviction in the combined company. With broader end markets, a growing service business and meaningful new scale, we believe there is the potential for significant upside ahead and look forward to participating in it as shareholders.”

“Each of our three companies brings a distinct strength, and together they are covering the data provisioning supply chain,” said Mitch Jacobs, President, V-TEK, Inc. and, following the acquisition, Senior Vice President, Data I/O Corporation. “V-TEK’s handling, test, inspection and packaging systems, A&J Programming’s service expertise and Data I/O’s programming and security technology fit naturally together. That combination lets us expand our solutions with modular and customized systems, flexible service offerings, and global distribution and on-site support. It’s a stronger offering for customers and a real growth platform for the business.”

Additional benefits from the acquisition of V-TEK include, but are not limited to, significant sales synergies across all revenue lines and channel partners, operating leverage synergies, and lower-cost domestic manufacturing, tooling and other capabilities that will improve margins over time while increasing scale and scope for future growth. Following the acquisition, V-TEK will operate as a subsidiary of Data I/O.

Transaction Terms

Total consideration was approximately $23 million, paid in a combination of $20 million in cash and $3 million in Data I/O common stock. A portion of the cash consideration came from the closing of the private placement announced on October 19, 2026.

StoneX Financial Inc. served as M&A advisor to the Company, and Dorsey & Whitney LLP served as legal advisor.

Sperry Mitchell & Company served as M&A advisor to V-TEK, and Blank Rome LLP served as legal advisor.

The securities referenced in this press release as part of the acquisition have not been registered under the Securities Act of 1933, as amended (“Securities Act”), or any state or other applicable jurisdiction’s securities laws. They may not be offered or sold absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor may there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Data I/O Corporation

Since 1972, Data I/O has developed innovative solutions to enable the design and manufacture of electronic products for automotive, Internet-of-Things, medical, wireless, consumer electronics, industrial controls and other electronics devices. Today, our customers use Data I/O’s data programming solutions and security deployment platform to secure the global electronics supply chain and protect IoT device intellectual property from point of inception to deployment in the field. OEMs of any size can program and securely provision devices from early samples all the way to high volume production prior to shipping semiconductor devices to a manufacturing line. Data I/O enables customers to reliably, securely, and cost-effectively bring innovative new products to life. These solutions are backed by a portfolio of patents and a global network of Data I/O support and service professionals, ensuring success for our customers. Learn more at dataio.com/Company/Patents.

Learn more at dataio.com

Safe Harbor/Forward Looking Statements and Disclosure Information

The Company cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements, including the benefits anticipated from the acquisition. Such forward-looking statements involve risks, assumptions and uncertainties. Statements in this news release may be construed as a prediction of future operations and performance or events are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements.

Forward-looking statement disclaimers also apply to the timing and contributions of acquisitions, acquisition synergies, the demand for the Company’s products, the impact from geopolitical conditions including any related international trade restrictions, and cybersecurity incidents and the possibility that the Company’s containment and remediation efforts may be unsuccessful or becomes a challenging force in maintaining market share. Factors that may impact the Company’s operations and finances include uncertainties as to the ability to record revenues based upon the timing of product deliveries, market acceptance of Edge AI, shipping availability, installations and acceptance, accrual of expenses, coronavirus or other business interruptions, changes in economic conditions, part shortages, business disruptions and other risks including those described in the Company’s 10-K, 10-Q and other periodic filings with the Securities and Exchange Commission (SEC), press releases and other communications.

Data I/O may use its website (www.dataio.com) and investor relations page (www.dataio.com/Company/Investor-Relations), its X account (@DataIO_Company), and its LinkedIn page (linkedin.com/company/data-io) to disclose material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors and other interested parties should monitor these sites, in addition to following Data I/O’s press releases, Securities and Exchange Commission (SEC) filings, public conference calls and public presentations/webcasts.

*References in this press release are made to non-GAAP (Generally Accepted Accounting Principles) financial measures, including profitability and operating/net income excluding one-time items, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA (AEBITDA), which excludes equity compensation, and AEBITDA excluding one-time items. Reconciliations are provided in the tables of this press release. Non-GAAP financial measures, such as EBITDA and Adjusted EBITDA, excluding equity compensation, and other one-time investments/expenses should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s results and facilitate the comparison of results.

Media Contact
Data I/O Corporation
Jennifer Higgins
Director Corporate Marketing
higginj@dataio.com
+1-425-867-6922

Investor Contact
Darrow Associates, Inc.
Jordan Darrow
jdarrow@darrowir.com
+1-631-766-4528

FAQ

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How much did Data I/O pay to acquire V-TEK and A&J Programming?

Data I/O paid approximately $23 million, consisting of $20 million in cash and $3 million in Data I/O common stock. A portion of the cash consideration came from the private placement announced on October 19, 2026.

What financial benefits does Data I/O expect from the V-TEK acquisition?

Data I/O expects the acquisition to double revenue and be accretive to existing operations. The company also anticipates sales and operating synergies, with lower-cost domestic manufacturing capabilities improving margins over time.