Flextronics Acquires International Display Works, Plans New Business Unit

Stock-for-stock merger worth approximately $300 million.

Flextronics International Ltd and International Display Works, Inc. (IDW) announced Tuesday that they have an agreement for Flextronics to acquire IDW, making IDW a wholly-owned subsidiary of Flextronics.

Under the agreement, Flextronics will acquire IDW in a stock-for-stock merger with a value of about $300 million. A fixed purchase price of $6.55 per share will be set for each share of IDW common stock. IDW can end the agreement if Flextronics’ average share price falls 15 percent or more below $11.73. If Flextronics’ average share price increases 15 percent or more above $11.73, the exchange ratio will be based on a fixed purchase price of $6.85 per share.

The acquisition is expected to close in the fourth quarter of 2006. Following the closing, Flextronics looks to combine IDW’s LCD operations with Flextronics’ Camera Module Group, TV tuner and Wifi and TFT module assembly operations to create a new business unit within Flextronics’ Components Division, employ 8,000 employees across six business unit factories, identify and implement synergies for the new business unit, and transition Flextronics’ LCD sourcing to IDW wherever possible.

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