SUZHOU -- Suzhou Dongshan Precision Manufacturing will acquire Multi-Fineline Electronix in an all-cash deal valued at $610 million. 

The agreement has been unanimously approved by both companies' boards, and MFlex's management intends to stay on after closing.

DSBJ, one of the world's largest suppliers of precision sheet metal components, will pay $23.95 in cash for each share of MFlex common stock held at the close of the transaction. The transaction will be funded by DSBJ with cash on hand, existing credit facilities and new debt financing, and is not subject to financing conditions.

The proposed transaction values Mflex's equity at approximately $610 million, on a fully diluted basis, and represents a premium of 40.8% over MFlex's closing stock price on Feb. 3 and a premium of 52.2% over its 30-day volume-weighted average closing stock price.

While primarily a flex circuit fabricator, MFlex has annual EMS sales of around $300 million. 

"We are pleased to have reached this agreement, which we believe realizes significant, immediate cash value for our stockholders, offers new opportunities for our employees and supports the future needs of our customers," said Reza Meshgin, chief executive officer of MFlex. "Positioning MFlex within a larger manufacturing conglomerate will also open new market opportunities for our flexible printed circuit and assembly solutions, further supporting the company's long-term growth outlook. In turn, our board has unanimously concluded that partnering with DSBJ is the best strategic path forward for MFlex."

"This transaction is a continuation of our growth and diversification strategy, and represents a new milestone in DSBJ's 35-year business history," said Yuan Yonggang, chairman and president of DSBJ. "The outstanding management team and employees of MFlex have built a global leader in flexible printed circuit design and manufacturing with a marquee customer list. Working together, we believe we can expand MFlex's brand and leadership in the mobility space, while accelerating market opportunities in the automotive, industrial, display and other fast-growing consumer segments. There are meaningful sales synergies we expect to realize through this acquisition given our complementary customer, product and manufacturing footprints."

The transaction, which is expected to close in the third quarter of fiscal 2016, is subject to approval by stockholders, regulatory approvals, including antitrust review in the US and China, review and clearance by the Committee on Foreign Investment in the U.S. and other customary closing conditions. Following closing, MFlex will continue to make its headquarters in Irvine, CA, as an independent business unit of DSBJ.

Meshgin and the MFlex senior management team are expected to remain in their same capacities.

MFlex is the world's 29th largest PCB fabricator, according to the NTI 100. Apple makes up the majority of its business, and the company has been prone to cyclical swings. 

It is the largest price paid for a PCB fabricator since TTM Technologies bought Viasystems in 2014 in a $927 million deal.

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