Data I/O Agrees to Buy V-TEK and A&J Programming for $23 Million

Data I/O Corporation agreed to acquire V-TEK, Inc. and A&J Programming, Inc. for approximately $23 million, adding semiconductor handling equipment and device programming operations if the deal closes.

The agreement was disclosed Oct. 19. About $3 million of the purchase price will be paid in Data I/O common stock, representing roughly 1.12 million shares. The planned funding mix also includes cash on hand and proceeds from a proposed $13.25 million securities offering.

The proposed offering is a private placement of convertible subordinated debentures and common shares. Data I/O expected that financing to close within days, subject to customary conditions.

V-TEK, based in Mankato, Minnesota, makes semiconductor handling and packaging equipment. A&J Programming, based in San Jose, California, provides device programming services. Data I/O provides programming and security provisioning for microcontrollers, security ICs and memory devices.

The acquisition remains pending. Data I/O expected it to close during the week of Oct. 19, subject to customary conditions.