CTS Corp. and Valpey Fisher Corp. announced that they have entered into a definitive merger agreement providing for the cash acquisition of Valpey Fisher by CTS. Upon closing of the transaction, Valpey Fisher will operate as an indirect wholly-owned subsidiary of CTS.

Pursuant to the terms of the definitive agreement, CTS will acquire 100 percent of the issued and outstanding equity of Valpey Fisher for $4.15 per share for a total purchase price of approximately $18 M. Valpey Fisher has $3 M of cash and is essentially debt free. Valpey-Fisher’s Board of Directors has unanimously approved the merger and recommends that Valpey Fisher’s stockholders vote in favor of the transaction. The transaction is subject to customary closing conditions and approval of Valpey Fisher’s stockholders.

The transaction is expected to close in January 2012.