Data I/O acquires V-TEK and A&J Programming for $23M

• Data I/O (DAIO) said on Monday it signed a definitive agreement to acquire V-TEK and A&J Programming for approximately $23M.
• The deal includes approximately $3M in Data I/O common stock, equivalent to 1.12M shares.
• The company also agreed to a proposed $13.25M private placement of convertible debentures and equity securities.
• The offering includes $7.25M in debentures convertible into common stock at $2.68 per share.
• Another $4M will be issued as non-voting preferred stock at $1,000 per share, convertible into common stock at $2.68 per share.
• The debentures will have a five-year term, with interest starting at 5% in the first year and increasing by one percentage point annually.
• The company plans to fund the acquisition with cash on hand, common stock, and proceeds from the proposed offering.
• The lead investor from its June 2026 private placement has committed an additional $4M to the offering.
• The offering is expected to close in the coming days, while the acquisition is expected to close this week.
• Share -3.73%

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