Flextronics International just announced it will acquire Solectron Corporation for an estimated $3.6 billion transaction through cash and stock. Both companies do not seem household names at first, and that is because they work backstage as electronic manufacturing services for many companies like HP, Dell, Sony, Cisco, Motorola and Microsoft, but they are definitely important players.
"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," said Mike McNamara, CEO of Flextronics.
The new company will operate in 35 countries, with a combined workforce of approximately 200,000 employees, including approximately 4,000 design engineers. According to Flextronics’ predictions the combined company's annual revenues will exceed $30 billion across seven diversified customer market segments and several vertical component divisions. The acquisition should be completed by the end of this year.