Data I/O Corporation (NASDAQ: DAIO) announced it has executed a letter of intent to acquire a semiconductor handling and packaging solutions manufacturer for approximately $23 million. The transaction is expected to nearly double the company's annual revenues and be accretive to earnings and cash flow.

The Redmond, Washington-based company plans to fund the acquisition through a combination of cash and equity. Up to $3 million of the total consideration will consist of Data I/O common stock, with the amount based on the future performance of the acquired business. The sellers will receive up to 15% of the total consideration in Data I/O stock.

"This acquisition makes strategic and financial sense, delivering value for customers and stakeholders alike," said William Wentworth, President and CEO of Data I/O Corporation. He noted the transaction will broaden the company's product suite and position it to serve semiconductor companies, electronics manufacturing services providers and original equipment manufacturers.

The acquisition is expected to close before the end of Data I/O's third quarter, subject to completion of definitive documentation, customary closing and financing conditions, regulatory approvals and additional due diligence. The company has not disclosed the identity of the acquisition target or additional deal terms.

Benchmark, a StoneX Company, is serving as merger and acquisition advisor to Data I/O, while Dorsey & Whitney LLP is providing legal counsel. The company will discuss the potential acquisition during its first quarter 2026 financial results conference call scheduled for May 14.

Data I/O provides data provisioning solutions for flash memory, microcontrollers and security integrated circuits, serving customers in automotive, Internet-of-Things, medical, wireless and consumer electronics markets.