MOORPARK, CA, Nov. 17 -- CTS Corp., a manufacturer of components and provider of electronics manufacturing services, will acquire SMTEK International in a cash and stock deal worth about $107 million.

CTS will pay between $14.20 and $15 per share, 75% in cash and 25% in CTS common stock, for SMTEK. CTS will also assume about $15 million in outstanding debt of SMTEK. Shares of SMTEK closed yesterday at $2.41 and the company's 52-week high is $7.50.

The acquisition is subject to shareholder approval and is expected to close in the first quarter 2005.

Upon completion of the deal, SMTEK will merge with CTS' EMS business unit, Interconnect Systems. The combination is expected to significantly expand the operational footprint, customer base, and capabilities of both businesses in the EMS market. The companies had combined revenues of about $625 million over the past 12 months.

In a press statement SMTEK chairman James Burgess said, "This acquisition ... recognizes [SMTEK's] achievement in emerging as a successful, effectively managed business with a strong competitive presence in the EMS industry. We feel the result will be significant business and financial benefits for both companies."

Elkhart, IN based CTS had revenues of $521 million over the past 12 months. SMTEK had sales of $102.4 million and operating earnings of $4 million

The companies will hold a conference call today at 1:30 p.m. Eastern: 800-762-6067 (480-629-9566, if calling from outside the U.S.). No access code is needed.