KKR to use new facility to buy Flextronics' software business

By Sara Rosenberg

New York, April 17 - Kohlberg Kravis Roberts & Co. has received fully underwritten commitments for a new credit facility to help fund its purchase of Flextronics International Ltd.'s software development and services business, according to a company news release.

Citigroup Global Markets (Asia) and Merrill Lynch are acting as joint bookrunners and joint lead arrangers on the deal.

Under the acquisition agreement, KKR is buying the business that provides high impact, innovative software services to the global communications industry for about $900 million. However, Flextronics will retain a 15% equity stake in the software business.

The software business, which will operate under a new name, has headquarters in Palo Alto, Calif., with operations located predominantly in India under the banner of Flextronics Software Systems.

Completion of the transaction is subject to regulatory approvals and customary closing conditions and is expected to take place in the summer.

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