SINGAPORE – Flextronics International has completed its acquisition of Solectron Corp., forming the world's second largest EMS company, with some $30 billion in annual revenues. Flextronics expects to pay approximately $1.07 billion in cash and issue approximately 221.8 million Flextronics ordinary shares pursuant to the merger.

Solectron's common stock will be delisted from the New York Stock Exchange and deregistered with the U.S. Securities and Exchange Commission.

The combined companies operate in 35 countries and employ 200,000.

In a statement, Flextronics chief executive Mike McNamara said, "Solectron is an extremely important strategic addition to Flextronics, and this combination transforms the landscape of our industry. By joining forces, our increased scale enables us to extend our market segment reach, increase our vertical integration opportunities and better serve the needs of our combined customers, employees and shareholders."

As part of the acquisition agreement, Flextronics has agreed to appoint two individuals designated by Solectron and approved by Flextronics to the board of directors of Flextronics. In connection with the appointment of these two new directors, which is expected to occur in the December quarter, Michael Marks and Richard Sharp intend to simultaneously retire as directors of Flextronics. Upon Marks's retirement, Ray Bingham will become chairman.