PHOENIX – EMS provider Suntron Corp. announced today that its majority shareholder, Thayer-Blum Funding, intends to take the company private, subject to completion of financing. The deal is expected to close in December.

Thayer-Blum, which holds 90% of Suntron's stock, has formed a new subsidiary to merge with and into Suntron to increase its ownership to 100%. Suntron will be the surviving entity of the merger, and its shares will no longer be publicly traded upon the effective date of the merger, which is expected to occur in December.

In an Securities and Exchange Commission filing, the terms of the proposed transaction provide that each share of Suntron common stock held by the public stockholders will automatically be converted into the right to receive a cash payment of $1.15 per share, without interest.

"We are very pleased with Thayer-Blum's decision to increase its investment in Suntron, as it demonstrates continued confidence in our ability to achieve the Company's long-term strategic objectives,'' said Suntron president and chief executive Paul Singh. "We believe that the costs associated with being a public company in today's environment exceed the benefits for Suntron and we look forward to aligning our resources with the needs of our customers. The going private transaction, along with other actions we have recently taken to improve our operating efficiencies, should provide us the flexibility to deliver our customers the highest quality service and solutions."

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