Transom Capital and SigmaTron International Announce Entry into Merger Agreement
SigmaTron International (NASDAQ: SGMA) has entered into a merger agreement with Transom Capital Group, where Transom will acquire all outstanding shares of SigmaTron for $3.02 per share in cash, valuing the company at approximately $83 million. The purchase price represents a significant premium of 134% over SGMA's closing price on May 20, 2025, and 136% over its 30-day volume-weighted average price.
The transaction is expected to close in Q3 2025, subject to stockholders tendering shares representing at least a majority of voting power and other customary conditions. Following the merger completion, SigmaTron will become privately held and its shares will be delisted from Nasdaq. The Company's Board of Directors has unanimously approved the merger and recommends stockholders tender their shares.
SigmaTron International (NASDAQ: SGMA) ha firmato un accordo di fusione con Transom Capital Group, in base al quale Transom acquisirà tutte le azioni in circolazione di SigmaTron al prezzo di 3,02 dollari per azione in contanti, attribuendo alla società un valore di circa 83 milioni di dollari. Il prezzo di acquisto rappresenta un premio significativo del 134% rispetto al prezzo di chiusura di SGMA del 20 maggio 2025 e del 136% rispetto al prezzo medio ponderato per volume degli ultimi 30 giorni.
La transazione è prevista per la chiusura nel terzo trimestre del 2025, subordinata alla presentazione da parte degli azionisti di azioni rappresentanti almeno la maggioranza del potere di voto e ad altre condizioni consuete. Al completamento della fusione, SigmaTron diventerà una società privata e le sue azioni saranno ritirate dalla quotazione Nasdaq. Il Consiglio di Amministrazione della Società ha approvato all'unanimità la fusione e raccomanda agli azionisti di presentare le proprie azioni.
SigmaTron International (NASDAQ: SGMA) ha firmado un acuerdo de fusión con Transom Capital Group, mediante el cual Transom adquirirá todas las acciones en circulación de SigmaTron por 3,02 dólares por acción en efectivo, valorando la compañía en aproximadamente 83 millones de dólares. El precio de compra representa una prima significativa del 134% sobre el precio de cierre de SGMA del 20 de mayo de 2025 y del 136% sobre su precio promedio ponderado por volumen de 30 días.
Se espera que la transacción se cierre en el tercer trimestre de 2025, sujeta a que los accionistas entreguen acciones que representen al menos la mayoría del poder de voto y a otras condiciones habituales. Tras la finalización de la fusión, SigmaTron pasará a ser una empresa privada y sus acciones serán retiradas de Nasdaq. La Junta Directiva de la Compañía ha aprobado unánimemente la fusión y recomienda a los accionistas que entreguen sus acciones.
SigmaTron International (NASDAQ: SGMA)는 Transom Capital Group과 합병 계약을 체결했으며, Transom은 SigmaTron의 모든 발행 주식을 주당 3.02달러 현금으로 인수하여 회사 가치를 약 8,300만 달러로 평가합니다. 매수 가격은 2025년 5월 20일 SGMA 종가 대비 134%의 상당한 프리미엄이며, 30일 거래량 가중 평균 가격 대비 136%에 해당합니다.
거래는 주주들이 최소 과반수의 의결권을 가진 주식을 제출하고 기타 통상적인 조건이 충족되는 것을 전제로 2025년 3분기에 마무리될 예정입니다. 합병 완료 후 SigmaTron은 비상장 회사가 되며, 나스닥 상장 주식은 상장 폐지됩니다. 회사 이사회는 만장일치로 합병을 승인했으며, 주주들에게 주식 제출을 권고하고 있습니다.
SigmaTron International (NASDAQ : SGMA) a conclu un accord de fusion avec Transom Capital Group, dans le cadre duquel Transom acquerra toutes les actions en circulation de SigmaTron pour 3,02 $ par action en espèces, valorisant la société à environ 83 millions de dollars. Le prix d'achat représente une prime significative de 134 % par rapport au cours de clôture de SGMA au 20 mai 2025, et de 136 % par rapport à son prix moyen pondéré par volume sur 30 jours.
La transaction devrait être finalisée au troisième trimestre 2025, sous réserve que les actionnaires présentent des actions représentant au moins la majorité du pouvoir de vote et d'autres conditions habituelles. Après la finalisation de la fusion, SigmaTron deviendra une société privée et ses actions seront retirées de la cote Nasdaq. Le conseil d'administration de la société a approuvé à l'unanimité la fusion et recommande aux actionnaires de présenter leurs actions.
SigmaTron International (NASDAQ: SGMA) hat eine Fusionsvereinbarung mit Transom Capital Group getroffen, wonach Transom alle ausstehenden Aktien von SigmaTron für 3,02 USD pro Aktie in bar erwerben wird, wodurch das Unternehmen mit etwa 83 Millionen USD bewertet wird. Der Kaufpreis stellt eine erhebliche Prämie von 134% gegenüber dem Schlusskurs von SGMA am 20. Mai 2025 und 136% gegenüber dem volumengewichteten Durchschnittspreis der letzten 30 Tage dar.
Die Transaktion soll im dritten Quartal 2025 abgeschlossen werden, vorbehaltlich der Einreichung von Aktien durch Aktionäre, die mindestens die Mehrheit der Stimmrechte repräsentieren, sowie weiterer üblicher Bedingungen. Nach Abschluss der Fusion wird SigmaTron privat gehalten und seine Aktien werden von der Nasdaq delistet. Der Vorstand des Unternehmens hat die Fusion einstimmig genehmigt und empfiehlt den Aktionären, ihre Aktien einzureichen.
- Premium of 134% over the last closing price, offering immediate value to shareholders
- Unanimous board approval indicates strong confidence in the deal
- Partnership with Transom Capital could provide resources for growth and expansion
- Transaction provides certainty and liquidity for shareholders
- Shareholders will lose future upside potential as the company goes private
- Delisting from Nasdaq will remove public market liquidity
- Current shareholders will no longer have ownership in the company post-merger
Insights
Transom Capital is acquiring SigmaTron for $3.02/share, representing a 134% premium and $83M enterprise value, benefiting shareholders significantly.
This merger announcement represents a significant premium for SigmaTron shareholders, with Transom Capital offering
The structure as a tender offer means Transom will directly purchase shares from willing SigmaTron stockholders, requiring a majority of shares to be tendered for the deal to proceed. Following the tender offer, a second-step merger will acquire any remaining shares at the same price. The Board's unanimous approval and recommendation to tender shares signals their confidence in the deal's value proposition.
For SigmaTron, this represents an exit opportunity at a substantial premium in the increasingly competitive electronic manufacturing services (EMS) industry. The deal allows shareholders to realize immediate value rather than waiting for potential organic growth. For Transom, an operationally-focused private equity firm, SigmaTron offers established manufacturing capabilities, customer relationships, and potential operational improvements that align with their middle-market investment approach.
The expected closing in Q3 2025 suggests typical regulatory review timelines, with customary closing conditions in place. Following completion, SigmaTron will become wholly private and delist from Nasdaq, ending its run as a publicly traded company.
LOS ANGELES and ELK GROVE VILLAGE, Ill., May 21, 2025 (GLOBE NEWSWIRE) -- Transom Capital Group, LLC (“Transom”), an operationally focused middle-market private equity firm, and SigmaTron International, Inc. (NASDAQ: SGMA) (the “Company” or “SigmaTron”), an electronic manufacturing services company, today announced that they have entered into a merger agreement pursuant to which an affiliate of Transom will acquire the Company.
Under the terms of the merger agreement, which has been unanimously approved by the Company’s Board of Directors, an affiliate of Transom will commence a tender offer to acquire all outstanding shares of the Company’s common stock, par value
“We are excited to partner with the SigmaTron team to support the next chapter of growth,” said Russ Roenick, Co-Founder and Managing Partner at Transom. “For decades, the Company has built a strong foundation, with its electronic manufacturing expertise, deep customer relationships, and a proven track record of delivering value. We look forward to working alongside management to build on that legacy and position the business for long-term success.”
Transaction Details
The transaction is expected to close during the third quarter of 2025, subject to the successful completion of the tender offer and other customary closing conditions. Following completion of the merger, the Company will be wholly owned by Transom and its shares will no longer be listed on Nasdaq.
The transaction is subject to the Company’s stockholders validly tendering shares of Common Stock representing at least a majority of the voting power of the Company and other customary closing conditions.
Following the successful closing of the tender offer, an affiliate of Transom will acquire any shares of the Company that are not tendered in the tender offer through a second-step merger for the same consideration as paid in the tender offer.
The Company’s Board of Directors unanimously recommends that the Company’s stockholders tender their shares in the tender offer.
Further information regarding the terms and conditions in the definitive transaction agreement will be provided in the tender offer materials on Schedule TO and Schedule 14D-9, which will be filed with the U.S. Securities and Exchange Commission (the “SEC”) in connection with the transaction.
Advisors
Kirkland & Ellis LLP is serving as legal advisor to Transom.
Lincoln International is serving as exclusive financial advisor for the Company; Greenberg Traurig, LLP and Howard & Howard Attorneys PLLC are serving as legal advisors for the Company.
About Transom Capital Group
Transom is a leading operationally-focused private equity firm that thrives in complexity, specializing in identifying and unlocking value in the middle market. Founded in 2008 and headquartered in Los Angeles, Transom has established a strong track record across various economic cycles by employing a time-tested, operationally intensive strategy to drive transformative outcomes. Transom’s expertise spans corporate carve-outs, lender-owned businesses, undervalued public companies, and other complex situations requiring speed, flexibility, and precision. Supported by a large in-house operations team, Transom delivers tailored solutions backed with functional expertise to help companies unlock their full potential.
Transom’s sector-flexible approach is grounded in pattern recognition, value creation, and disciplined execution. The firm provides not only capital, but also the tools, insights, and operational capabilities necessary to accelerate performance and create long-term value.
For more information, visit www.transomcap.com
About SigmaTron International, Inc.
Headquartered in Elk Grove Village, Illinois, the Company operates in one reportable segment as an independent provider of electronic manufacturing services (“EMS”). The EMS segment includes printed circuit board assemblies, electro-mechanical subassemblies and completely assembled (box-build) electronic products. The Company and its wholly-owned subsidiaries operate manufacturing facilities in Elk Grove Village, Illinois; Acuna, Chihuahua, and Tijuana, Mexico; Union City, California; Suzhou, China; and Biên Hòa City, Vietnam. In addition, the Company maintains an International Procurement Office and Compliance and Sustainability Center in Taipei, Taiwan.
Additional Information and Where to Find It
In connection with the proposed acquisition of the Company, an affiliate of Transom (“Merger Sub”) will commence a tender offer for all of the outstanding shares of common stock of the Company. The tender offer has not yet commenced. This communication is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell shares of the Company. It is also not a substitute for the tender offer materials that Transom Axis AcquireCo, LLC (“Parent”) and Merger Sub will file with the SEC upon commencement of the tender offer. At the time that the tender offer is commenced, Parent and Merger Sub will file tender offer materials on Schedule TO with the SEC, and the Company will file a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC with respect to the tender offer. THE TENDER OFFER MATERIALS (INCLUDING AN OFFER TO PURCHASE, A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER TENDER OFFER DOCUMENTS), THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9, AND ANY OTHER RELEVANT DOCUMENTS FILED BY THE COMPANY, PARENT OR MERGER SUB WILL CONTAIN IMPORTANT INFORMATION THAT SHOULD BE READ CAREFULLY AND CONSIDERED BY THE COMPANY’S STOCKHOLDERS BEFORE ANY DECISION IS MADE WITH RESPECT TO THE TENDER OFFER. A free copy of these materials will be available to the Company’s stockholders by visiting the Company’s website (https://sigmatronintl.com/investors/). In addition, these materials (and all other documents filed by the Company, Parent and Merger Sub with the SEC) will be available at no charge on the SEC’s website (www.sec.gov) upon filing with the SEC. The information contained in, or that can be accessed through, the Company’s or Transom’s respective websites is not a part of, or incorporated by reference herein.
Forward-Looking Statements
Certain statements contained in this press release are “forward-looking statements.” Words such as “continue,” “anticipate,” “will,” “expect,” “believe,” “plan,” and similar expressions identify forward-looking statements. These forward-looking statements are based on the current expectations of SigmaTron. All statements, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, among others, statements relating to SigmaTron’s or Transom’s future financial performance, business prospects and strategy, expectations with respect to the tender offer and the merger, including the timing thereof and SigmaTron’s and Transom’s ability to successfully complete such transactions and realize the anticipated benefits. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, among others, the risks and uncertainties inherent in the tender offer and the merger, including, among other things, (i) regarding how many of SigmaTron’s stockholders will tender their shares in the tender offer, (ii) the possibility that competing offers will be made, (iii) the ability to obtain requisite regulatory approvals, (iv) the ability to satisfy the conditions to the closing of the tender offer and the merger, (v) the expected timing of the tender offer and the merger, (vi) the possibility that the merger will not be completed, (vii) difficulties or unanticipated expenses in connection with integrating the parties’ operations, products and employees and the possibility that anticipated synergies and other anticipated benefits of the transaction will not be realized in the amounts expected, within the expected timeframe or at all, (viii) the effect of the announcement of the tender offer and the merger on SigmaTron’s and Transom’s business relationships (including, without limitations, partners and customers), (ix) the risk that SigmaTron’s stock price may fluctuate during the pendency of the tender offer and merger transactions, (x) the diversion of SigmaTron’s or Transom’s respective management’s time and attention from ongoing business operations and opportunities, (xi) the response of competitors and other market participants to the transaction, (xii) potential litigation relating to the transaction, (xiii) uncertainty as to timing of completion of the transaction and the ability of each party to consummate the transaction, (xiv) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, (xv) the expected tax treatment of the transaction, (xvi) and the impact of global macroeconomic conditions and supply chain challenges on SigmaTron’s business and (xvii) other circumstances beyond SigmaTron’s and Transom’s control. You should not place undue reliance on these forward-looking statements. Certain of these and other risks and uncertainties are discussed in SigmaTron’s and Transom’s filings with the SEC, including the Schedule TO (including the offer to purchase, letter of transmittal and related documents) Transom and its acquisition subsidiary will file with the SEC, and the Solicitation/Recommendation Statement on Schedule 14D-9 that SigmaTron will file with the SEC, and SigmaTron’s most recent Form 10-K and Form 10-Q filings with the SEC. Except as required by law, neither SigmaTron nor Transom undertakes any duty to update forward-looking statements to reflect events after the date of this press release.
Media Contacts
FGS Global for Transom Capital
transomcapital@fgsglobal.com
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