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Benchmark Electronics to acquire Secure Technology

Benchmark Electronics, Inc. (NYSE: BHE) today announced that it has entered into a definitive agreement to acquire Secure Communication Systems, Inc. and its subsidiaries (collectively referred to as "Secure Technology" or "Secure"), a leading engineered products and solutions provider, for approximately $230 million in cash, on a debt-free, cash-free basis subject to a working capital adjustment.

Secure, headquartered in Santa Ana, California, is a leading provider of customized high performance electronics, sub-systems, and component solutions for mission critical applications in highly regulated industrial, aerospace and defense markets. The transaction is expected to be immediately accretive to Benchmark's margins and earnings per share.

"We are very excited about the strategic acquisition of Secure Technology and look forward to offering our customers an expanded portfolio of highly engineered solutions and enhancing value creation for our shareholders," said Gayla Delly, President and Chief Executive Officer of Benchmark. "Together with the Secure team, we will have new opportunities with customers in our industrial markets, which include the aerospace and defense sectors. In addition, Secure will be able to leverage Benchmark's manufacturing and supply chain expertise, operational systems and long history of quality performance to provide a broader array of solutions and services to its customers."

Allen Ronk, Secure Technology's Chief Executive Officer, noted "The strategic and cultural fit between our two companies will be a strong differentiator; the Secure team is enthusiastic about joining Benchmark. This transaction will allow us to accelerate Secure's strategic plans, offer additional services to our customers and provide increased opportunities to our employees."

Don Adam, Benchmark's Chief Financial Officer, noted "This financially attractive acquisition exceeds our targeted return thresholds and aligns well with our disciplined capital allocation framework, while positioning Benchmark to drive higher value for our shareholders. We expect the transaction to increase operating margins and EPS, as well as further diversify our revenue mix. We remain committed to our rigorous capital allocation priorities and will continue returning capital to shareholders, while sustaining a strong balance sheet to fund future growth investments."

The transaction will be funded with Benchmark's bank credit facility and is expected to close in the fourth quarter of 2015, subject to customary closing conditions, including regulatory approvals.

Press release issued by Benchmark Electronics, Inc. on October 22, 2015


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