TORONTO – SMTC Corp. has entered into a definitive agreement with an affiliate of H.I.G. Capital in which H.I.G. will acquire all outstanding shares of SMTC’s common stock for $6.044 per share in cash, representing a premium of approximately 22% over SMTC’s closing share price on Dec. 31 and 66% over the share price 60 days ago.

The deal values SMTC at about $170.5 million.

SMTC’s board of directors has unanimously approved the acquisition and recommends the company’s stockholders adopt the agreement.

“Over the past three years, the team at SMTC has done an excellent job of transforming the company into a global leader among midsize providers of end-to-end electronics manufacturing services by offering superior supply chain management and proactive services and solutions to an expanding base of customers,” said Ed Smith, president and CEO of SMTC. “Partnering with H.I.G. will enable us to accelerate our growth through continued investment in our customers, capabilities, and footprint.

“In addition to delivering immediate value to our stockholders, this investment provides SMTC Corporation with a long-term partner with an extensive track record of supporting its portfolio companies with operational expertise, technology and financial management experience. Together, we believe we can capitalize on strategic growth opportunities, while continuing to meet the needs of our customers by delivering high-quality, innovative solutions and services.”

“We are pleased to partner with Eddie Smith and his team,” said Phillip Wood-Smith, managing director of H.I.G. “They have done an outstanding job over the past three years serving some of the most attractive end EMS markets, including aerospace and defense, industrial IoT, 5G, and medical and safety. With its industry-leading solutions and strong customer relationships, we believe there is significant opportunity to invest in SMTC’s customers and capabilities to further expand the company’s leadership position. We look forward to partnering with SMTC’s talented management team and employees to serve its customers with best-in-class solutions, build upon its existing capability excellence, and help SMTC achieve its full potential.”

The transaction, which is subject to the receipt of approval from SMTC’s stockholders, antitrust clearance, and other customary closing conditions, is expected to close by the second quarter of 2021.

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