has been acquired by
Three-Five Systems, Inc.
Capital Alliance Corporation initiated
this transaction and assisted in its closing.
ETMA Electronics Manufacturing Corporation services OEM customers in the industries of medical monitoring, computer and server hardware, and Internet security systems. With the aid of Capital Alliance, ETMA sold its operations to Three-Five Systems, a publicly traded electronics manufacturing company, for $38 million. ?
ETMA’s turnkey manufacturing and fulfillment services included surface-mount manufacturing lines and automated printed circuit assembly lines. Having built a strong management team, the company’s two shareholders wished to pursue other business opportunities, and a private equity firm offered a letter of intent. When the firm reneged on its offer late in the transaction, ETMA called upon Capital Alliance.
Capital Alliance arranged a buyer’s visit within two weeks and secured a letter of intent in twenty-four days, drawing upon its experience in electronics manufacturing and broad network of contacts. In total, the transaction closing occurred just two months and five days after ETMA engaged Capital Alliance. The newly united companies meshed so well that Three-Five Systems was able to utilize ETMA in maximizing its excess capacity in China and the Far East.
Capital Alliance exceeded ETMA’s expectations by a wide margin. The shareholders received $38 million in cash at closing. The closing price was 500% more than book value, 33.6 times greater than the previous year’s operating profit, and 25% higher than the original, withdrawn letter of intent.