Thursday, September 17, 2009

Flextronics Sells Stake in Aricent to KKR for $255 Million

Flextronics has sold its equity investment in Aricent for $255 million in cash.

KKR is a leading global alternative asset manager. Together with its initial investment in 2006, KKR entities now own 79 percent of the company.

Paul Read, chief financial officer of Flextronics, said "as we have previously announced, it is our intention to monetize non-core assets and benefit from the cash generated from those dispositions. We are pleased to have successfully executed this transaction, which increases our cash position and further strengthens our balance sheet. During the past year, we have delivered by approximately $1.4 billion, which includes $1.1 billion of debt paydown and the reduction of A/R sales and securitizations by approximately $277 million. These strategic steps have significantly improved our financial flexibility, while maintaining our cash balance over the last year at the approximate level of $1.7 billion."

"We are pleased to invest further in a company that has just reported its highest annual revenue in its history and continues to grow its customer base. This investment reflects our belief in management and the company as they continue to grow Aricent at this very important time in the communications industry," Sanjay Nayar, CEO of KKR India, said.

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