DDi Corp.
NASDAQ : DDIC

DDi Corp.
Coretec Inc.
TSX : CYY

Coretec Inc.

December 31, 2009 09:00 ET

DDi Corp. Completes Acquisition of Coretec Inc.

ANAHEIM, CALIFORNIA and TORONTO, ONTARIO--(Marketwire - Dec. 31, 2009) - DDi Corp. (NASDAQ:DDIC) and Coretec Inc. (TSX:CYY), both leading providers of technologically advanced printed circuit board ("PCB") engineering and manufacturing services, announced today that DDi has completed the acquisition of Coretec. As previously announced, the purchase price of CDN $25.2 million was comprised of approximately CDN $7.4 million in cash for Coretec's securities and repayment or assumption of CDN $17.8 million of Coretec debt.

Commenting on the acquisition, Mikel Williams, President and Chief Executive Officer of DDi Corp., stated, "With the acquisition of Coretec, we have combined two of the leading PCB manufacturers in the North American market – a combination that we believe will strengthen our position in the market, extend our capability to support our collective customers and be beneficial to DDi's shareholders. We have already commenced planning and implementing a full integration of the companies' Toronto operations to create a world-class facility. We are also working to quickly integrate our sales, general and administrative functions. We are focused on realizing operational cost savings, capital expenditure synergies, and improved utilization of the combined operating assets as quickly as possible. However, we are committed to putting the needs of our customers first, and intend to complete the integration with minimal, if any, impact to our customers. We are also looking forward to utilizing the two additional US facilities in Denver and Cleveland to enhance our service offerings to our customers. With the addition of Coretec to DDi, we expect to gain additional strength in the strategic military/aerospace marketplace and strengthen our capabilities with respect to flex and rigid-flex technologies."

DDi indirectly acquired 17,506,807 shares of Coretec, representing approximately 97.1% of the issued and outstanding shares in the capital of Coretec, for consideration of CDN $0.38 per share. DDi owns 515,000 shares of Coretec, representing the remaining approximately 2.9% of the issued and outstanding shares in the capital of Coretec. As a result of the arrangement, Coretec is owned directly and indirectly by DDi. The acquisition was effected by way of plan of arrangement pursuant to a final order of the Ontario Superior Court granted on December 30, 2009. Coretec expects that its shares will be delisted from the Toronto Stock Exchange at the close of trading on or about January 5, 2010.

DDi was advised in the transaction by Mooreland Partners LLC.

About DDi

DDi is a leading provider of time-critical, technologically advanced, electronics manufacturing services. Headquartered in Anaheim, California, DDi and its subsidiaries offer PCB engineering, fabrication and manufacturing services to leading electronics OEMs and contract manufacturers worldwide from its facilities across North America and with manufacturing partners in Asia.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the effects and benefits of the transaction and the delisting of the Coretec common shares from the Toronto Stock Exchange. Generally, forward-looking statements are preceded by, followed by or otherwise include the words "believes," "expects," "anticipates," "intends," "estimates," "plans," "predicts," "projects," "targets," "will likely result," "will continue," "may," "could," or similar expressions. Forward-looking statements relating to expectations about future results or events are based upon information available to DDi Corp. as of today's date, and DDi Corp. does not assume any obligation to revise or update any of these statements to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws. The forward-looking statements are not guarantees of the future performance of DDi Corp. and involve significant risks and uncertainties. Actual results may vary materially from the results and expectations discussed. Actual results or developments may vary materially from those projected or implied in the forward-looking statements as a result of any number of factors, including, but not limited to, currency exchange rate fluctuations; variability of operating results; dependence on certain industries; management of growth and expansion; integration of operations; ability to attract and retain key personnel; product complexity and product defects; international operations; material cost fluctuations and limited availability of raw materials; potential loss of customers; industry contraction and slow economic growth; technological change and process development; environmental liability; need for additional financing; product liability; pricing pressure; ability to reduce costs; adverse state, federal or foreign legislation or regulation or adverse determinations by regulators; and other risks discussed in the sections entitled "Risk Factors" in DDi Corp.'s Form 10-K and Forms 10-Q which can be obtained at www.sec.gov and in Coretec Inc.'s Annual Information Form dated March 26, 2009 which can be obtained at www.sedar.com.

Contact Information

  • DDi Corp.
    Mikel Williams
    Chief Executive Officer
    (714) 688-7200
    or
    Coretec Inc.
    Paul Langston
    Chief Executive Officer
    (416) 208-2100
    or
    Coretec Inc.
    Aaron Ames
    Chief Financial Officer
    (416) 208-2100