Flextronics to acquire Solectron
From Times Wire Services
Flextronics International Ltd. said it would buy rival Solectron Corp. for $3.6 billion in cash and stock to cut costs and expand its product line.
The merger between the biggest U.S. companies in the contract electronics industry would create a company with more than $30 billion in annual revenue and a workforce of about 200,000 people, they said.
Under the deal, each Solectron share will be swapped for either 0.3450 Flextronics share or $3.89 cash. The cash price is a 15% premium over Solectron’s closing price Friday. Shares of Milpitas, Calif.-based Solectron gained 51 cents to $3.88 on Monday. Shares of Singapore-based Flextronics fell 16 cents to $11.54.