SINGAPORE - Flextronics International Ltd. announced Monday its acquisition of Solectron Corp. in a stock and cash transaction worth approximately $3.6 billion.
The combined company will create a diversified global provider of advanced design and vertically integrated electronics manufacturing services (EMS) with over $30 billion in annual revenues.
The transaction is expected to be completed by the end of calendar year 2007.
The global EMS company will have operations in 35 countries, a combined workforce of about 200,000 employees, including nearly 4,000 design engineers.
As part of the agreement, Solectron has the right to nominate two people, approved by Flextronics, to the board of directors of the combined company.
Until the acquisition is completed, both companies will continue to operate their businesses independently.
“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,” said Mike McNamara, CEO of Flextronics.
Flextronics is a supplier of Electronics Manufacturing Services (EMS) for the automotive, computing, consumer digital, industrial, infrastructure, medical and mobile OEM markets. It had revenues of $18.9 billion in fiscal year 2007.
Solectron is a provider of complete product lifecycle services, including collaborative design and new product introduction, supply chain management, lean manufacturing and aftermarket services. It had sales revenues of $10.6 billion in fiscal 2006.