PENANG, MALAYSIA -- Plexus Corp. will acquire Kontron's design and assembly operations here, and certain existing accounts, in a deal worth $30 million to $35 million.

The deal is subject to entry into a definitive agreement, which is expected in the next few weeks.

The deal covers Kontron's Design Manufacturing Services (M) Sdn. Bhd. subsidiary in Penang. Under the stated terms, Plexus would acquire the inventory and equipment of KDMS, including substantially all its employees, in exchange for a commitment of approximately $100 million of incremental revenue annually for two years.

Kontron is a developed of embedded computing technology and an existing Plexus customer. The deal is expected to add $50 million to $75 million of revenue for Plexus in its fiscal 2012 and be modestly accretive to EPS. Plexus' fiscal year ends Oct. 1.

No real estate is included in the proposed deal.

Plexus president and chief executive Dean Foate said, "We believe this strategic arrangement will expand and strengthen our existing relationship with Kontron, capitalizing on our demonstrated leadership in mid-to-low volume, higher complexity manufacturing programs. Once fully transitioned into our manufacturing facilities, which is expected by the end of our fiscal 2012, we anticipate that the program will be consistent with our long-term financial model."

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