TORONTO -- SMTC Corp. will build assemblies for Leitch Technology in a deal worth an estimated annualized run rate of $20 million.

SMTC will provide electronics manufacturing services for Leitch, a maker of high-end video systems.

Under the terms of the agreement, SMTC will initially provide complete manufacturing services to Leitch at its new product introduction center in Markham, Ontario, and its facility in Chihuahua, Mexico.

In a statement, SMTC senior vice president of business development Steve Hoffrogge said the "transition ... is well underway, with full roll out of the initial phases expected in the third and fourth quarters of the year."