AcquisitionsNov 12, 2026, 07:16 AM
Data I/O Acquires V-TEK for $23M, Expects to Double Revenue
AI Summary
Data I/O Corporation announced its third quarter 2026 results and the transformational acquisition of V-TEK, Inc., including Royce Instruments and A&J Programming, for $23 million. This acquisition is expected to double revenues and diversify the company's market exposure, reducing reliance on the automotive sector. While Q3 revenues decreased slightly to $4.9 million, gross margin improved to 58.0%. The company also secured a $13.25 million investment and a $7.5 million credit line.
Key Highlights
- Data I/O acquired V-TEK, Inc., Royce Instruments, and A&J Programming for $23M ($20M cash, $3M stock).
- Acquisition is expected to double revenues and be accretive to earnings.
- Q3 2026 revenues were $4.9 million, down from $5.2 million in Q2 2026.
- Q3 2026 gross margin was 58.0%, up from 57.0% in Q2 2026.
- Adjusted EBITDA (excl. equity comp & one-time items) was ($71,000) in Q3 2026.
- Company secured $13.25 million direct investment and a $7.5 million bank line of credit in October 2026.
- Automotive exposure reduced from 70% to an estimated 35% post-acquisition.
Price Impact
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