Eltek Ltd., an Israeli manufacturer of advanced flex-rigid printed circuit boards (PCBs) has entered into a $4.2 million investment agreement with Nistec Ltd., an Israeli provider of Electronic Manufacturing Services (EMS) and design services, to sell Nistec 3.53 million ordinary shares at $1.19 per share.
Nistec will also acquire the holdings of Eltek's major shareholder, Yossi Maiman (24.1%), for $2.3 million, or $1.45 per share. Upon completion of the transactions, Nistec will hold just over 50 percent of the Eltek. The investment agreement and certain ancillary agreements are subject to approval at a shareholder meeting scheduled to take place within 60 days.
Founded in 1985, Nistec is a private company, owned by Yitzhak Nissan. It provides a turnkey solution for electronics outsourcing.
“After 25 years of being the controlling shareholder of Eltek, Yossi Maiman decided to sell his holdings. Nistec's investment in Eltek will enable Eltek to continue to grow and strengthen its leading position in the high-end PCB industry and expand into new niche markets within the industry," said Erez Meltzer, Chairman of the Board of Directors of Eltek.
"Investing in Eltek adds an important link in the chain to our group, combining the design and assembly with the production of PCBs,” said Nissan. “Eltek has significant experience in supporting major customers worldwide in the defense, aerospace and medical industries."
Eltek specializes in the high end of PCB manufacturing such as High Density Interconnect (HDI), multilayered and flex-rigid boards. Its revenue for the quarter ended March 31, 2013 was $12.5 million, compared to $12.0 million in the first quarter of 2012.