Data I/ O stock takes on new credit terms after V-TEK deal
Published on 11/01/2026 at 00:05 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSFinancing expands after acquisition
- Data I/O entered into a secured revolving credit agreement with Western Alliance Bank after acquiring V-TEK and A&J Programming.
- The facility is intended for working capital and general corporate purposes and matures in October 2028 unless repaid earlier.
- Financial covenants and collateral requirements will be important factors as Data I/O integrates the acquired businesses.
Data I/O Corporation entered into a secured revolving loan agreement with Western Alliance Bank after completing its acquisition of V-TEK and A&J Programming. The company disclosed the agreement in a Form 8-K filed on Thursday, October 29, 2026, with the underlying loan agreement effective Monday, October 26.
The facility allows borrowings of up to 7.5 million US dollars or the lower borrowing-base amount determined by eligible accounts and inventory. Data I/O said advances may be used only for working capital and general business purposes. The agreement permits repayment and reborrowing until October 26, 2028, when outstanding amounts become due unless they mature earlier under the agreement.
Credit terms add execution constraints
Borrowings carry interest at 1 percentage point above the Prime Rate, which is defined as the greater of 5.75 percent and the US prime rate most recently quoted in The Wall Street Journal. The borrowers must also pay an 18,750 US dollar facility fee on the closing date and each anniversary.
Data I/O, V-TEK and A&J are jointly and severally liable under the agreement. The lender receives security interests in accounts, inventory, equipment, deposit accounts, investment property, intellectual property and related proceeds. The agreement requires at least 3.0 million US dollars of unrestricted cash on deposit with Western Alliance and a fixed charge coverage ratio of at least 1.25 to 1.00.
The filing, as summarized by StockTitan, also lists restrictions covering dispositions, changes of control, mergers, additional indebtedness, liens, distributions, investments and related-party transactions. A default could allow the lender to accelerate the obligations, stop further advances and enforce its collateral rights.
Data I/O's operating platform
Data I/O, headquartered in Redmond, Washington, develops data programming and security provisioning solutions for microcontrollers, memory devices and other electronic components. Its portfolio includes automated programming systems, secure data provisioning, Programming-as-a-Service and connected manufacturing software for automotive, industrial and IoT customers. The company describes itself as the largest business in semiconductor programming and says it is expanding from capital equipment toward software and recurring revenue. The V-TEK and A&J businesses broaden its exposure to semiconductor handling, packaging and programming services.
Data I/O Corporation at a glance
- Company: Data I/O Corporation
- Ticker: DAIO
- Exchange: Nasdaq
- Headquarters: Redmond, Washington, United States
- Sector: Technology
- Industry: Electronic components
- Credit facility: Up to 7.5 million US dollars, subject to the borrowing base
- Loan agreement: Effective October 26, 2026
US equity investors will focus on liquidity, covenant compliance and the pace at which the acquired operations contribute to the combined business. Current market reports provide broader context for technology stocks and financing conditions.
