Solectron acquired by Flextronics in cash and stock deal

By Lisa Kerner

Charlotte, N.C., Oct. 1 - Flextronics International Ltd. acquired Solectron Corp. and as a result, Solectron's common stock will be delisted from the New York Stock Exchange.

On June 4, Flextronics announced a definitive agreement to acquire Solectron for some $3.6 billion. Solectron shareholders could elect to receive either 0.345 of a Flextronics share or a cash payment of $3.89 per share.

"Solectron is an extremely important strategic addition to Flextronics and this combination transforms the landscape of our industry," Flextronics chief executive officer Mike McNamara said in a company news release.

"Solectron's strength in the high-end computing and telecom segments is an invaluable addition to Flextronics's existing capabilities and the combined company is a market leader in most product segments.

"The combined company is clearly more diversified and formidable than either company on its own, and Flextronics is better positioned to increase shareholder value through greater cash flow and earnings," McNamara added.

Flextronics is an electronics manufacturing services provider based in Singapore. Located in Milpitas, Calif., Solectron offers collaborative design and new product introduction, supply chain management, lean manufacturing and aftermarket services.

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