Shares of DDi Corp. surged Wednesday after the Anaheim-based circuit board maker announced it was being acquired for $268 million by a competitor.
Investors sent DDi shares up 5.6% in midday New York trading to a market value of about $263 million on word that Viasystems Group Inc. in St. Louis will buy the company.
The price is a 20% premium based on the average price of DDi’s common stock over the last three months.
The terms of the agreement have been unanimously approved by the boards of each company.
The deal is expected to be completed late in the second quarter or early third quarter.
The combined company is expected to have annual revenue of $1.3 billion and employ 15,650 people.
DDi makes circuit boards that later are assembled with chips.
The boards go inside equipment for aerospace, military, industrial, medical, networking and communication uses.
DDi built its name in the industry by turning around boards quickly, especially on prototypes.
Most of the company’s orders are completed in less than 10 days, sometimes within 24 hours.
The buy will increase Viasystems’ market share in the military and aerospace market, and the growing industrial and instrumentation market, while broadening its customer base.
Shares of Viasystems were up more than 6% to a market value of about $410 million.