M&A · Tech · Printed Circuit Boards
H.I.G. to acquire SMTC Corp
Announced Jan 4, 2021 · Closed Apr 5, 2021
Deal value$171MEV $205M
Premium22.0%To unaffected price
EV / Adj. EBITDA8.4x0.5x EV / Revenue
ConsiderationAll cash$6.04 per share
Transaction
- Acquirer
- H.I.G.
- Target
- SMTC Corp
- Buyer type
- Strategic
- Offer price per share
- $6.04
- Enterprise value
- $205M
- Status
- Closed Apr 5, 2021
Deal protections
- Break fee (target pays)
- $5.6M · 3.3%
- Reverse fee (buyer pays)
- $11.1M · 6.5%
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- Lincoln International
- Lincoln International fee
- $4.3M
Sector context · Tech
- Comparable deals
- 12 in the prior 24 months
- Premium
- 22.0% vs. 30.8% sector median
- EV / Adj. EBITDA
- 8.4x vs. 20.0x sector median
- Break fee
- 3.3% vs. 2.8% sector median
Timeline
- AnnouncedJan 4, 2021
- Proxy filedJan 21, 2021
- Definitive proxyFeb 18, 2021
- Shareholder voteMar 31, 2021
- ClosedApr 5, 2021
Valuation · fairness opinions
Discounted cash flow$5.64$7.04
Trading comparables$4.76$5.77
Trading comparables$5.26$6.47
Offer $6.04
Implied value per SMTC Corp share by analysis, from Lincoln International · DCF discount rate 10.75%–12.25%.