TT Electronics has agreed to a £287m acquisition offer from its Swiss rival, Cicor Group.

The 155 pence per share offer for the British firm, which engineers and manufactures electronic solutions for critical applications, represents a 64% premium on TT's last closing share price.

Upon completion, TT shareholders will receive 100 pence in cash per share and 0.0028 new Cicor shares.

Cicor said the acquisition fits with its long-term strategy of growing its presence in the high mix low volume electronic manufacturing services (EMS) sector.

The Swiss firm stated that the deal presents a "highly compelling strategic rationale", which would create a "leading global pure play EMS provider" across Europe, the Americas and Asia.

The agreed sale comes after TT recorded a 5% drop in group revenue in the year to 31 December, leading it to launch Project Dynamo, which aimed to save £17m in cost savings by 2026.

Chair at TT, Warren Tucker, said: "The uncertain macroeconomic and geopolitical outlook represent elevated risks given TT's scale. Furthermore, the TT Directors are cognisant of the challenges and low trading liquidity that companies of TT's size face in the UK public markets.

"Cicor has made a compelling offer which delivers accelerated value for shareholders and represents an attractive premium to recent trading levels and crystallises a substantial proportion of shareholder value in cash today. At the same time, TT shareholders retain the ability to benefit from the significant potential synergies and future upside from their continued ownership in the enlarged Cicor group".

Following the announcement, shares in TT increased by almost 60%.

Investment director at AJ Bell, Russ Mould, said that TT is set to be the latest firm to leave the London Stock Exchange.

He stated: "The UK stock market looks set to say ta-ta to TT, after its larger Swiss rival launched a compelling bid for the electronics manufacturer. TT is no stranger to corporate activity, having undertaken eight acquisitions itself since 2016, but now it finds itself on the other end of a take-over.

"A rising share price from both companies shows the market likes this deal, even though Cicor paid a 64% premium to TT shareholders. And with TT trading at just eight times forward earnings, well below its long-term average, this looks like an opportunistic time to pick up a competitor on the cheap."

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