Data I/O Corporation (NASDAQ: DAIO) announced today that it completed its acquisition of V-TEK, Inc. and A&J Programming, Inc. The deal was valued at approximately $23 million and is expected to be immediately accretive and materially affect the company’s financial performance and growth outlook.
The acquisition supports Data I/O’s strategy to diversify revenue and reduce its dependence on the cyclical automotive and capital equipment markets. CEO William Wentworth said the deal more than doubles the company’s consolidated revenue and expands its reach into data centers, AI, medical, and aerospace.
Data I/O funded the transaction with a combination of cash and stock. Part of the cash consideration came from a private placement that closed on October 19.
The addition of V-TEK also accelerates Data I/O’s Programming-as-a-Service offerings and increases the share of revenue from software and services.