By Christopher Kuo

Data I/O signed a letter of intent to acquire a leading manufacturer of semiconductor handling and packaging solutions.

The semiconductor device programming platform company said on Thursday it plans to fund the acquisition with a combination of cash and equity worth about $23 million. Data I/O expects the acquisition to close before the end of the third quarter and to nearly double its annual revenues.

The current owners of the business being acquired will receive up to 15% of the consideration in Data I/O stock, said Chief Executive William Wentworth.

The company's shares rose 11% in after-hours trading Thursday to $3.25. The stock closed up 5.1% to $2.91.

The company on Thursday posted a loss of $3.2 million, or 34 cents a share, compared with a loss of $382,000, or 4 cents a share, a year earlier. Revenue fell to $3.3 million from $6.2 million.

The company on Thursday also entered into a securities purchase agreement with two institutional investors for $9 million. As part of the purchase, the company will issue 869,840 shares of common stock, convertible debentures of about $6.8 million and warrants to purchase up to 1,080,000 shares of common stock for $9 million.

The investments are expected to close before the end of May. Data I/O plans to use the funding for additional working capital, general corporate purposes and potential strategic acquisitions, it said.

Write to Christopher Kuo at chris.kuo@wsj.com

(END) Dow Jones Newswires

May 14, 2026 17:24 ET (21:24 GMT)

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