SAN JOSE -- Flex announced Tuesday night a deal to buy NEXTracker, a designer and manufacturer of solar-panel tracking systems, for about $245 million in cash.

Flex could pay up to $85 million more if certain targets are met.

The acquisition is expected to close in early December, and contribute between $80 million to $120 million in revenue for Flex's December quarter, the company said. 

Once the deal is completed, NEXTracker will operate as a subsidiary, retaining its existing brand.

NEXTracker designs and manufactures a single-axis photovoltaic (PV) tracker that orients PV panels to maximize energy output. The acquisition will augment the Flex Energy business and contribute to its more than $1 billion in sales, and is expected to be accretive to Flex's growth, margin, EPS and cash flow generation. Overall, the company's industrial and energy unit generates about $4.5 billion in revenue, or 17% of the total.

"This acquisition aligns well with our strategy of acquiring technologies that deliver innovative, value-added solutions to our customers in industries with strong growth rates and higher margins," said Mike McNamara, CEO of Flex. "Together with our existing Energy capabilities, the NEXTracker solutions will enable Flex to further enhance our sketch-to-scale™ solar offerings. Our strong, free cash flow generation enables margin-accretive acquisitions like this to be completed, while at the same time allowing us to remain committed to maximizing shareholder value through returning over 50% of free cash flow to our shareholders."

Flex is the new name of Flextronics.

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