Transom Capital's Tender Offer for SigmaTron International Expiration: 71.9% of Shares Tendered

Transom Capital Group's tender offer for SigmaTron International has expired with 71.9% of shares tendered. The acquisition, priced at $3.02 per share in cash, is expected to close on July 28, 2025. All conditions for the tender offer have been met, and payment to shareholders is imminent. Transom will process payments for the tendered shares promptly, ensuring a swift transaction conclusion.

Transom Capital Group's tender offer for SigmaTron International (SGMA) has expired with 71.9% of shares tendered. The acquisition, priced at $3.02 per share in cash, is expected to close on July 28, 2025. All conditions for the tender offer have been met, and payment to shareholders is imminent. Transom will process payments for the tendered shares promptly, ensuring a swift transaction conclusion.

The tender offer was announced on May 21, 2025, with Transom Capital Group offering to acquire all outstanding shares of SigmaTron International for $3.02 per share. This represents a significant premium of 134% over SGMA's closing price on May 20, 2025, and 136% over its 30-day volume-weighted average price. The transaction is expected to close in Q3 2025, subject to stockholders tendering shares representing at least a majority of voting power and other customary conditions. Following the merger completion, SigmaTron will become privately held and its shares will be delisted from Nasdaq [1].

SigmaTron International has been experiencing a decline in financial performance over the past year. In Q3 FY2025, the company reported a 26% decrease in revenue to $71.1 million compared to $95.9 million in the same quarter last year. Despite this, the company recorded a net income of $3.9 million ($0.63 per share), up from $0.6 million ($0.10 per share) year-over-year, largely due to a $7.2 million gain from a sale/leaseback transaction of their Elk Grove Village facility [2].

The acquisition by Transom Capital Group is expected to provide SigmaTron International with additional capital and strategic guidance to navigate the challenges it has faced in recent quarters. The company's CEO, Gary R. Fairhead, has expressed optimism for the future, citing strong backlogs and expectations of rebounding demand. The acquisition also resolves the previous non-compliance issue raised by Nasdaq on August 16, 2024, due to the delay in filing the Form 10-K [3].

References

[1] https://www.stocktitan.net/news/SGMA/
[2] https://www.stocktitan.net/news/SGMA/
[3] https://www.stocktitan.net/news/SGMA/