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.