Flextronics Nears Sale of 2 Units
SINGAPORE -- Flextronics has signed separate agreements for the sale of its network services and semiconductor business units. Both deals were previously announced.
The transactions will generate aggregate upfront cash of more than $550 million plus additional deferred and contingent payments and a 30% ownership stake in the merged network services company. Both transactions are expected to close before the end of the September quarter.
Flextronics Network Services will merge with Telavie AS, a company wholly- owned by Altor 2003 Fund, a Nordic private equity firm. Under the terms of the definitive agreement, Flextronics will receive an upfront cash payment, deferred and contingent payments, and will also retain a 30% ownership stake in the merged company.
Flextronics will also sell Flextronics Semiconductor for cash to AMIS Holdings, parent company of AMI Semiconductor.
"These transactions allow Flextronics to concentrate its efforts and resources on the core EMS business," said Michael Marks, chief executive of Flextronics.
