Cherokee International Corp. said Thursday that it agreed to be bought by Lineage Power Holdings Inc, a Gores Group company, in an all-cash deal worth about $105 million.

Tustin-based Cherokee, which makes power supplies for original equipment manufacturers, said Lineage, a Mesquite, Texas power technology company, agreed to pay $3.20 a share, a 33 percent premium over the stock’s Wednesday closing price.

Cherokee’s board has approved the deal and certain stockholders agreed to vote their shares in favor of the transaction, Cherokee said in a statement. The company’s market value has fallen about 40 percent over the past year after the company lost two major customers.

Cherokee would become a division of privately held Lineage, which was acquired last December by Los Angeles-based Gores, the investment vehicle of billionaire Alec Gores. The deal is expected to close in the fourth quarter.

“We are impressed by the accomplishments that (Cherokee Chief Executive Jeffrey Frank) and his management team have made to date regarding Cherokee’s North American and Asian operations,” said Ryan Wald, Gores Group managing director, in a statement.

Cherokee International shares were up 55 cents, or 23 percent to $2.95 in morning trading on the Nasdaq.