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  • SigmaTron (SGMA) Stock Jumps After Announcing Merger Deal

    SigmaTron (SGMA) Stock Jumps After Announcing Merger Deal

    Following the announcement of a final merger agreement with Transom Capital Group, LLC, the stock price of SigmaTron International, Inc. (NASDAQ: SGMA) had a notable spike, rising 130.23% to $2.97.

    Unveiling a Strategic Acquisition Agreement

    SigmaTron will be acquired by an affiliate of Transom, a private equity firm with operating experience in the middle market, for around $83 million. Transom will launch a tender offer to buy all outstanding shares of SigmaTron’s common stock for $3.02 per share in cash in accordance with the terms of the agreement.

    This offer reflects a significant premium of over 136% above the 30-day volume-weighted average price and 134% above the closing price of the SGMA on May 20, 2025. Transom’s faith in the company’s operating capabilities and long-term worth is demonstrated by the offer.

    Growth and Integration Vision

    Transom Capital has a track record of value development, strong client connections, and decades of experience in electronic manufacturing. In order to build on SigmaTron’s current capabilities and strategically position the company for long-term development and innovation, the firm plans to work closely with the company’s leadership. It is anticipated that the alliance would increase market prospects and operational efficiency.

    Subsequent Actions and Shareholder Suggestions

    If the majority of SigmaTron’s shares are successfully put up for tender and the usual closing requirements are met, the deal is expected to conclude in the third quarter of 2025. Following completion, SigmaTron’s shares will be delisted from the Nasdaq exchange and it will become a fully owned subsidiary of Transom. At the same price as the tender, any remaining unsold shares will be purchased through a second-step merger.

    The deal has received unanimous approval from the SigmaTron Board of Directors, which strongly advises shareholders to tender their shares in the upcoming offer. With this purchase, SGMA enters a critical phase and joins a strategic partner ready to propel its next stage of expansion.

  • Why SigmaTron International, Inc. (SGMA) stock is falling today?

    Shares of the SigmaTron International, Inc. (SGMA) stock were falling in the pre-market trading session today on July 22, 2021. The SGMA stock price saw a decline of 6.99% to drop at $5.06 a share at the time of this writing. In the previous trading session, SGMA stock was green and went high by 7.72% at closing. Let’s discuss more about SigmaTron.

    What’s Happening?

    There seems to be no news related to SigmaTron International in today’s date to justify the bearish sentiment however, SGMA yesterday on July 21, 2021, announced the execution of a definitive agreement and plan of merger with Wagz, Inc which is the privately held pet technology. This merger is the result of the previous announcement that happened last year on  June 4, 2020, in which SGMA stock and Wags, Inc executed the letter of intent in which the proposed business combination was mentioned. This letter of intent has now become the framework for the merger agreement between two parties.

    According to the agreement, the shareholders of Wagz would get 2,443,870 shares issued by SigmaTron which means that the stockholders of Wagz own approximately 28% of SGMA stock and Wagz will operate as the wholly-owned subsidiary of the SigmaTron. It is expected that deal would be closed by the end of September 2021 after reaching certain milestones and meeting the conditions by both parties before closing.

    Forgiveness of $6.3 million loan:

    On July 14, 2021, the SGMA stock did announce the full forgiveness of its Small Business Administration (“SBA”) Paycheck Protection Program loan which was approximately $6.3 million. The forgiveness was received due to  Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) on April 23, 2020. The SGMA stock will do accounting for the forgives in the first quarter of 2022 financial results.

    Financial View of the SGMA stock:

    In the third quarter of 2021 financial results, the revenue was reported $71.5 million compared to $67.4 million in the third quarter of 2020. Net income for the SGMA stock reported $249,268 in the third quarter of 2021 as compared to a net loss of $217,039 in the same tenure of the previous year.

    Conclusion:

    Today’s market sentiment is not in favor of SGMA stock, however, it went high after announcing its recent merger agreement with Wagz, Inc. Recent financial results were positive as compared to the previous year’s same period.