– EMS provider CTS Corp.
announced the acquisition of privately held Orion Manufacturing Inc.
for approximately $10 million in cash.
CTS expects the transaction to be accretive in the first year.
Under terms of the agreement, CTS may pay up to an additional $1.75 million in cash based on the achievement of certain financial targets in 2008 and 2009.
San Jose-based Orion provides contract electronics manufacturing services to the defense, aerospace, industrial and medical markets. It had 2007 sales of approximately $27 million. The move will push CTS's estimated annual EMS revenues over $400 million.
CTS will combine its operation in Santa Clara, CA, with Orion.