Investing.com -- Shares of SigmaTron International Inc (NASDAQ: SGMA ) surged 127.9% today following the announcement of a definitive merger agreement with Transom Capital Group, LLC. The substantial increase reflects investor enthusiasm for the deal, which values the electronic manufacturing services company at approximately $83 million.

Under the terms of the agreement, Transom Capital will commence a tender offer to purchase all outstanding shares of SigmaTron’s common stock for $3.02 per share in cash. This offer represents a premium of around 134% over SigmaTron’s closing market price on May 20, 2025, and about 136% over the 30-day volume-weighted average price.

The acquisition has been unanimously approved by SigmaTron’s Board of Directors and is expected to close in the third quarter of 2025, subject to the successful completion of the tender offer and customary closing conditions. Following the merger, SigmaTron will become a wholly-owned subsidiary of Transom and will be delisted from Nasdaq.

Russ Roenick, Co-Founder and Managing Partner at Transom, expressed enthusiasm about the partnership, stating, "We are excited to partner with the SigmaTron team to support the next chapter of growth." He praised SigmaTron’s electronic manufacturing expertise, deep customer relationships, and track record of delivering value, and expressed a commitment to building on that legacy for future success.

The transaction is contingent upon a majority of SigmaTron’s stockholders tendering their shares, among other customary conditions. Post-merger, any remaining shares not tendered will be acquired through a second-step merger at the same price as the tender offer. SigmaTron’s Board is recommending that stockholders tender their shares in support of the transaction.

Details of the merger agreement will be further outlined in the tender offer materials to be filed with the U.S. Securities and Exchange Commission. Kirkland & Ellis LLP is acting as the legal advisor to Transom, while Lincoln International is the exclusive financial advisor to SigmaTron. Legal advice for SigmaTron is being provided by Greenberg Traurig, LLP and Howard & Howard Attorneys PLLC.

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