Flextronics to acquire Solectron for $3.6B

SINGAPORE and MILPITAS, Calif. — Flextronics International Ltd. and Solectron Corp. announced today that the two companies have entered into a definitive agreement for Flextronics to acquire Solectron. The combined company will have the broadest worldwide EMS capabilities, from design resources to end-to-end vertically integrated supply chain services.

Operating in 35 countries, with a combined workforce of approximately 200,000 employees, including approximately 4,000 design engineers, the combined company's annual revenues will exceed $30 billion across seven customer market segments and several vertical component divisions.

Under the terms of the definitive agreement, unanimously approved by the Boards of Directors of both companies, shareholders of Solectron will receive total consideration currently valued at approximately $3.6 billion, based on the closing price of Flextronics ordinary shares on June 1, 2007.

"Solectron is an extremely important strategic addition to Flextronics and this combination transforms the landscape of our industry," said Mike McNamara, chief executive officer of Flextronics. "By joining forces, we expect the increased scale will enable us to further extend our market segment reach and leverage an increased vertical integration opportunity, realize significant cost savings, and better serve the needs of our combined customers, employees and shareholders."