Sunday, June 3, 2007

Flextronics to Acquire Solectron for $3.6 Billion

In a deal likely to transform the contract manufacturing of high-end computing, networking and telecom gear, Flextronics International agreed to acquire Solectron Corporation for approximately $3.6 billion in equity, based on the closing price of Flextronics ordinary shares on June 1, 2007. Both companies specialized in electronics manufacturing services for OEM customers.

The combined company will have approximately 4,000 design engineers, 200,000 employees, and annual revenues exceeding $30 billion.

"Solectron's strength in the high-end computing and telecom segments will be an invaluable addition to Flextronics's existing capabilities and the combined company will be a market leader in most product market segments. We will be a larger, more competitive company and therefore better positioned to deliver supply chain solutions that fulfill our customers' increasingly complex requirements. The breadth and depth of the combined company significantly leverages our vertical integration capability while taking significant costs out of the combined company's infrastructure," stated Mike McNamara, CEO of Flextronics.