Viasystems Group Inc. said today it will acquire a San Jose contract electronics manufacturer to boost the company's full box-build capabilities and its West Coast presence.
Viasystems, a St. Louis-based CEM, agreed to purchase Top Line Electronics Corp., a 10-year-old CEM with 500 employees. Last year, the Silicon Valley company, which specializes in telecommunications and networking products, generated $55 million in revenue.
Viasystems officials expect to close the transaction by the end of the second quarter this year. The mid-tier CEM, which has global operations, is expanding its manufacturing footprint in the United States and abroad. Viasystems' move to purchase Top Line is representative of the ongoing consolidation taking place within the $90 billion CEM industry.
"It's good news. We have two plants in Silicon Valley," said Daniel Chen, Top Line's president and chief executive.
Top Line is expected to contribute $70 million in annual sales to Viasystems, said Herve Francois, an analyst with Credit Suisse First Boston in New York. The San Jose company offers design, mixed technology assembly, testing, packaging, and order fulfillment.
"By adding Viasystems' backplane assembly expertise to their facilities, it will enable us to better serve our combined customer base," said Timothy L. Conlon, Viasystem's president and chief operating officer.