Printed circuit boards maker Viasystems Group Inc has completed the acquisition of smaller rival DDi Corp for approximately $268 million in cash. The deal will add more products to its portfolio and expand its manufacturing base in North America.
The merger agreement will consist of Viasystems acquiring DDi for $13.00 per share in cash. An amount which accounts for a 20% premium to the volume weighted average price of DDi's common stock over the last three months.
Viasystems expects the transaction to be immediately accretive to Adjusted EPS, even without the impact of anticipated cost synergies, which Viasystems expects to be at least $10 million annually, before income tax effects, and realisable within six months after closing.
The terms of the agreement were unanimously approved by the boards of directors of both Viasystems and DDi. The deal is not expected to be completed until late in the second quarter or early in the third quarter of calendar 2012 and is still subject to customary closing conditions, including the receipt of regulatory approvals and adoption of the merger agreement by DDi shareholders.
David Sindelar, Chief Executive Officer of Viasystems, said, "This transaction combines two market leaders and strengthens Viasystems' position as a world-class leader in PCB and related electro-mechanical solutions by expanding our technology and manufacturing capabilities, diversifying our end markets and broadening our customer base and product portfolio.
Mikel Williams, Chief Executive Officer of DDi, said, "We believe that this transaction is an excellent opportunity to realize value for DDi shareholders and creates new opportunities for our customers and employees.
Following the completion of the deal, the collective company will have approximately 15,650 employees and manufacturing floor space exceeding 4.3 million square feet in China and 1.0 million square feet in North America.
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