Mergers - Flextronics and Solectron
Nice article on merger of Flextronics and Solectron. Solectron is best known for the DVD kiosks it manufactures along with its contract to build ATMs for NCR.
Flextronics International Ltd. acquired self-service software company WebRaiser Technologies earlier this year, but the company didn’t stop there. Just a few months after that purchase, Flextronics focused its attention on its main competitor in the manufacturing space — Solectron Corp.
The acquisition of Milpitas, Calif.-based Solectron, tagged at $3.6 billion, is expected to close by the end of the year. The deal will make Flextronics the world’s second-largest electronics manufacturing and self-service powerhouse, trailing only Taiwan-based Hon Hai Precision Industry Co. in terms of annual sales, according to Forbes.
Terms of the deal
* Flextronics International Ltd. acquired Solectron Corp. for about $3.6 billion in cash and stock, based on the closing price of Flextronics’ ordinary shares on June 1, 2007.
* The deal is expected to close by the end of year.
* The combined company will have operations in 35 countries and a workforce of about 200,000 employees.
The merged Flextronics-Solectron company is expected to bring in more than $30 billion a year in revenue, with operations in 35 countries and a workforce of approximately 200,000 employees.
Flextronics manufactures Microsoft’s X-Box and other electronics for companies such as Dell, Ericsson, Hewlett-Packard and Siemens. Two of Solectron’s customers include Kodak and Redbox, two of the world’s larger kiosk companies, said Francie Mendelsohn, president of Summit Research Associates.
“This acquisition makes Flextronics a bigger player than they themselves have ever been,” she said.
Rest of story
Posted by staff at June 22, 2007 10:07 AM