SMTC to acquire ZF Array Technology

Co-CEO Alex Walker stated, "This transaction is part of SMTC's strategy to grow and diversify its revenue base via accretive acquisitions, and is exemplary of our ability to quickly capitalize on attractive acquisition opportunities." The purchase price is expected to be approximately $9.1 million, of which approximately $2.4 million is composed of a 2-year performance based earn out. The deal will be financed from the company's credit facility and from cash on hand. ZF's San Jose facility is located in close proximity to SMTC's San Jose facility, and one-time costs of approximately $1.5 million are anticipated in the integration of the two facilities and workforces. The senior management team and employees of ZF will join SMTC, with Bob Zinn, ZF's CEO and majority owner continuing on in an executive advisory and business development capacity. "The acquisition of ZF's operations in California will significantly strengthen SMTC's market offering, providing our customers with expanded capability in complex radio frequency engineering and systems integration services," said co-CEO Claude Germain. "The design, engineering, and technical depth of these operations will significantly bolster and differentiate SMTC in San Jose." Bob Zinn stated, "This deal will go a long way towards enhancing our collective presence, with expanded offerings and capabilities for both companies' customers. ZF and SMTC share a strong commitment to superior customer service and it is for this reason that our clients will feel right at home with SMTC." Mr. Zinn went on to state, "My team and I are very excited to join SMTC and look forward to further expansion in the region."