Data I/O Proposes to Acquire Embedded Software Security Assets from IAR

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Companies Continue Strategic Commercial Partnership as Data I/O Brings Embedded Trust and Secure Deployment Technology In-House to Deliver End-to-End Security Provisioning from Design to Manufacturing REDMOND, Wash. and UPPSALA, Sweden, July 10, 2026 (GLOBE NEWSWIRE) -- Data I/O Corporation (NASDAQ: DAIO) and I.A.R. Systems AB ("IAR") today jointly announced that Data I/O has entered into a non-binding LOI to acquire the embedded software security IP and related assets from IAR. Financial terms of the transaction and anticipated timing were not disclosed. The proposed acquisition builds directly on the companies' February 2026 announcement of a technology collaboration unifying security provisioning from embedded design through manufacturing. With this transaction, Data I/O will bring in-house the core technology underlying that collaboration — including the Embedded Trust and Secure Deploy platforms, the eSecIP toolchain, and the certificate authority and provisioning infrastructure originally developed by IAR — while IAR and Data I/O continue their commercial partnership. Full ownership of the IAR embedded software security technology stack will give Data I/O direct control over the security provisioning roadmap, device support, and release cadence, and position the company to extend its security offering upstream into the design phase while continuing to serve customers through its industry-proven programming and provisioning platforms. The acquisition expands our provisioning platform by giving engineers the ability to design with security in mind as opposed to an afterthought. As Data I/O continues its transformation this strengthens the company's position as government regulations and industry standards — including the EU Cyber Resilience Act — increasingly mandate robust security measures for connected electronic products. The EU Cyber Resilience Act (Regulation (EU) 2024/2847) is a comprehensive regulation that sets mandatory cybersecurity and vulnerability-handling standards for nearly all hardware and software products connected to a network. With full mandatory compliance for all products sold in the EU by December 2027, the act introduces lifecycle security requirements, CE marking, security-by-design standards, guaranteed security updates, and includes strict reporting for Software Bill of Materials (SBOM). The intended transaction between Data I/O and IAR includes, among other assets, software and source code, hardware, intellectual property, engineering infrastructure, manufacturing equipment, and certifications. Following the closing, Data I/O will take full ownership of customer support for these products going forward.

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