Nortech Systems To Acquire Suntron's Midwest Operation in Garner, Iowa

Estimated reading time: 1 minute

Nortech Systems Inc., a leading provider of full-service electronics manufacturing services (EMS), today announced that it has agreed to acquire Suntron Corporation's Midwest operation located in Garner, Iowa, which provides comprehensive EMS offerings with an emphasis on ruggedized capabilities for harsh environments and demanding applications.

Nortech will purchase the assets, intellectual property and customers associated with this operation. The acquisition is subject to customary closing conditions. The Iowa management team will remain in place to lead this new Nortech business and its employee force of approximately 100 people. Terms of the asset purchase were not disclosed.

Strategically, the acquisition will strengthen Nortech's capabilities in printed circuit board assemblies and higher-level complete box build assemblies while opening new market segments, including agriculture and oil and gas. The company anticipates the new operation will be accretive to Nortech Systems' fiscal 2007 results.

"This strategic acquisition offers many valuable synergies to our business," said Mike Degen, Nortech Systems' president and CEO. "Along with gaining new customers and new market opportunities, the addition of this operation will provide expanded offerings for both our new and existing customers. Furthermore, it will be a growth driver for us as it ideally complements our existing EMS strategy."

About Nortech Systems, Inc.

Nortech Systems Inc. (www.nortechsys.com), based in Wayzata, Minn., is a full-service electronics manufacturing services (EMS) provider of wire and cable assemblies, printed circuit board assemblies, and higher-level complete box build assemblies for a wide range of industries. Markets served include medical, automotive, defense, computer, commercial, recreational, government and consumer. The company has manufacturing capabilities and operating partners in the U.S., Asia and Latin America. Nortech Systems, Inc. is traded on the NASDAQ Stock Market under the symbol NSYS.