- Electronic manufacturing services company Sigmatron International Inc SGMA agreed to issue 2.44 million shares to pet technology company Wagz Inc shareholders.
- The shares are worth $12.34 million based on Sigmatron's Tuesday closing price of $5.05.
- It follows a Jun. 4, 2020 Letter of Intent between the companies, where Wagz will own a 28% stake in Sigmatron and become its subsidiary under the arrangement. The deal is likely to close by Sep. 2021.
- Wagz continues to be attracted to Sigmatron to vertically integrate its IoT opportunities, thereby allowing it to gain more significant margins and better serve the market.
- Sigmatron plans to continue in its traditional electronic manufacturing services market.
- Price action: SGMA shares traded higher by 6.53% at $5.38 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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