Shares of SigmaTron International Inc. (NASDAQ:SGMA) experienced a dramatic surge of nearly 128% today after the company revealed it has entered into a definitive merger agreement with Transom Capital Group, LLC. The deal values SigmaTron, a provider of electronic manufacturing services, at close to $83 million.
As part of the agreement, Transom Capital will initiate a tender offer to buy all outstanding SigmaTron common shares at $3.02 per share in cash. This price represents a substantial premium—approximately 134% above SigmaTron’s closing price on May 20, 2025, and about 136% higher than the stock’s 30-day volume-weighted average price.
The transaction has received unanimous approval from SigmaTron’s Board of Directors and is anticipated to finalize in the third quarter of 2025, pending the successful completion of the tender offer and other standard closing conditions. Once the acquisition is complete, SigmaTron will become a wholly-owned subsidiary of Transom and will no longer be listed on the Nasdaq exchange.
Russ Roenick, Co-Founder and Managing Partner at Transom Capital, shared his excitement about the partnership, highlighting SigmaTron’s expertise in electronic manufacturing, strong client relationships, and consistent value creation. He emphasized Transom’s commitment to supporting the company’s next phase of growth and development.
The deal requires the majority of SigmaTron shareholders to tender their shares, along with satisfying other typical conditions. Any shares not tendered during the offer will be acquired through a subsequent merger at the same cash price. The Board of SigmaTron recommends shareholders accept the offer to support the transaction.
Further information about the merger will be detailed in tender offer documents to be filed with the U.S. Securities and Exchange Commission. Legal counsel for Transom Capital is Kirkland & Ellis LLP, while SigmaTron is advised by Greenberg Traurig, LLP and Howard & Howard Attorneys PLLC. Lincoln International is acting as SigmaTron’s exclusive financial advisor.