MALMO, SWEDEN -- Scandinavia's two largest EMS companies could be headed for a merger as Scanfil Oyj today announced a public offer of SEK443 million ($52.6 million) for PartnerTech.

PartnerTech’s board signaled its approval of the offering following the assent of the company's two largest shareholders, which represent a cumulative 65.9% of the firm's shares, expressed their support. 

Combined, the companies would have overall revenue of nearly $500 million, good for a top 40 position on the CIRCUITS ASSEMBLY Top 50. Scanfil had 2014 sales of 214 million euros ($235 million), while PartnerTech's revenue was 2,239 krona ($266 million). PartnerTech has struggled with profitability, however, and has an aggregate net loss over the past four years, due in large part to its money-losing Metal Precision Division.

The offer represents a premium of approximately 58.6% above PartnerTech’s volume-weighted average trading price at Nasdaq Stockholm over the 90 calendar days ended May 22, and a premium of 27% over the closing price for the PartnerTech that day. 

The 30-day offer is conditional upon approval of at least 90% of PartnerTech's outstanding shares and other regulatory approvals.

Scanfil's board said it expects annual cost-savings through the merger of a minimum of 5 million euros. It did not rule out facility closings or dispositions, but said it does currently not foresee any material changes to PartnerTech’s management and employees.

Malmo-based PartnerTech has 10 EMS plants across six countries and three continents, while Sieve, Finland-based Scanfil has eight in China and Europe.