SOURCE: DDi Corp.

October 30, 2006 17:12 ET

DDi Corp. Completes Acquisition of Sovereign Circuits

ANAHEIM, CA -- (MARKET WIRE) -- October 30, 2006 -- DDi Corp. (NASDAQ: DDIC), a leading provider of technologically advanced PCB engineering and manufacturing services, announced today that it has completed the acquisition of Sovereign Circuits Inc., a privately-held printed circuit board manufacturer, for a combination of $5,153,180 in cash and 1,201,964 shares of DDi common stock, plus the assumption of Sovereign's net debt of approximately $2.5 million. Under the terms of the merger agreement, 15% of the purchase price will be held in escrow by a third-party escrow agent for up to one year, to cover any indemnification claims that may arise. Sovereign will continue operating as a wholly-owned subsidiary of DDi Corp.

Commenting on the acquisition, Mikel Williams, President and Chief Executive Officer of DDi Corp., stated, "With the addition of Sovereign Circuits to DDi, we expect to gain strength in important strategic markets, such as military, aerospace and the high-reliability commercial markets, and extend our technical capabilities to include flex and rigid-flex technologies. The company's combined national sales team, offering all of our resources to our extensive customer base as well as targeted new relationships, will allow for improved market penetration."

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.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding the Company's assumptions, projections, expectations, targets, intentions or beliefs about future events. Words or phrases such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "targets," "will likely result," "will continue," "may," "could" or similar expressions identify forward-looking statements. Forward-looking statements include, but are not limited to, statements above that the proposed transactions will be accretive to stockholders, DDi's ability to extend its presence in other markets which it believes are less vulnerable to other manufacturers, and the anticipated benefits of the proposed transaction with Sovereign Circuits. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. We caution that while we make such statements in good faith and we believe such statements are based on reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records, and other data available from third parties, we cannot assure you that the Company's projections will be achieved. In addition to other factors and matters discussed from time to time in the Company's filings with the U.S. Securities and Exchange Commission, or the SEC, some important factors that could cause actual results or outcomes for DDi or its subsidiaries to differ materially from those discussed in forward-looking statements include: the anticipated benefits to the Company of the sale of the assembly business and the acquisition of Sovereign Circuits may not be realized; the final purchase prices received as a result of the sale of the assembly business and the price paid for Sovereign Circuits may be different than anticipated due to post-closing adjustments; changes in general economic conditions in the markets in which we may compete and fluctuations in demand in the electronics industry; the Company's ability to sustain historical margins; increased competition; increased costs; loss or retirement of key members of management; increases in the Company's cost of borrowings or unavailability of additional debt or equity capital on terms considered reasonable by management; and adverse state, federal or foreign legislation or regulation or adverse determinations by regulators. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors.

Contact Information

  • For Further Information:

    AT THE COMPANY:
    Sally Goff
    Chief Financial Officer
    (714) 688-7200
    Email Contact

    AT NMC Partners:
    Kathleen Buczko
    Investor/Analyst Information
    (562) 366-1552
    Email Contact