The merger will cost IMI US$106 million in cash, according to company officials. As a result of the merger, Speedy-Tech shareholders will receive $0.535 in cash per share or a share exchange of IMI shares for every one Speedy-Tech share.

Consequently, Speedy-Tech will be delisted from the Singapore Stock Exchange and will become a wholly-owned subsidiary of IMI. Speedy-Tech provides manufacturing and design services for power electronics companies and has manufacturing facilities in China, Singapore, and locally in Cavite.

Arthur Tan, IMI's president and CEO, said the merger will enhance IMI's capabilities in electronics manufacturing services (EMS) and widen its global market base. "We now have capabilities and build more products for specific markets," Tan told reporters in a press briefing Thursday.

IMI is a privately-held subsidiary of Ayala Corp. with manufacturing facilities in Laguna and Cebu and engineering and design centers in Tustin, California. It headquarters is in Alabang, Muntinlupa.

The company does contract manufacturing and design services for global original equipment manufacturers -- mostly from Japan and the U.S. -- in the areas of optical and hard disk drive communications, industrial, consumer, and automotive electronics markets.