Benzinga | Jul 21, 2021 01:43PM EDT

Sigmatron-Wagz Agree For Merger Deal

* Electronic manufacturing services company Sigmatron International Inc (NASDAQ:SGMA) agreed to issue 2.44 million shares to pet technology company Wagz Inc shareholders.

* The shares are worth $12.34 million based on Sigmatron's Tuesday closing price of $5.05.

* It follows a Jun. 4, 2020 Letter of Intent between the companies, where Wagz will own a 28% stake in Sigmatron and become its subsidiary under the arrangement. The deal is likely to close by Sep. 2021.

* Wagz continues to be attracted to Sigmatron to vertically integrate its IoT opportunities, thereby allowing it to gain more significant margins and better serve the market.

* Sigmatron plans to continue in its traditional electronic manufacturing services market.

* Price action: SGMA shares traded higher by 6.53% at $5.38 on the last check Wednesday.