Friday, April 15, 2005

KKR to Acquire Flextronics' Software Group fot $900 Million

Kohlberg Kravis Roberts & Co. (KKR), a private equity firm specializing in management buyouts, agreed to acquire Flextronics' software development and solutions business for approximately $900 million. Flextronics will retain a 15% equity stake in the software business and continue as an important business partner and customer.

Flextronics' software business supplies source code to network equipment OEMs for use in both infrastructure platforms and client devices. The group is headquartered in Palo Alto, California, with a majority of its R&D in India.

Following completion of the transaction, CEO Ash Bhardwaj, FSS President Arun Kumar, and the existing management team will continue to lead the software business. It will operate under a new name, which has yet to be selected.
  • In September 2004, Flextronics agreed to acquire FutureSoft, a supplier of communication software for network equipment OEMs, for an undisclosed sum. FutureSoft's product portfolio includes a range of protocol stacks, including LAN, WAN, IP, Internetworking, ATM, Telecom Signaling and Network Management software suites. FutureSoft employs 524 software engineers and is expected to generate about $23 million in revenues for its fiscal year ending March 2005. FutureSoft is headquartered in Chennai (Madras), India with subsidiaries in the U.S. and the U.K

  • In June 2004, Flextronics agreed to acquire Hughes Network Systems' entire ownership stake of fifty-five percent (55%) in Hughes Software Systems (HSS), a leading provider of software products and services to telecom infrastructure companies, for a total cash consideration of approximately US$226 million (Rs547 per share). HSS, which is based in India, provides convergent software solutions for fixed and mobile networks for both voice and data. Its products and services span a variety of domains, such as optical networks, wireless networks, satellite networks, switching systems, convergent networks and broadband networks. HSS' product portfolio includes protocol stacks and value-added frameworks and are comprised of licensable technologies focused on Voice over Packet (VoP), SS7, broadband and wireless (GPRS/UMTS) products that provide customers with open architecture solutions.

  • In December 2005, Agilent Technologies completed the divestiture of its Semiconductor Products business to Kohlberg Kravis Roberts & Co. (KKR) and Silver Lake Partners for $2.66 billion. The new company operates under the name Avago Technologies.

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