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June 5, 2007 – Electronics manufacturer Flextronics today announced it will acquire California-based Solectron Corp. to become a diversified global provider of electronics, according to yesterday’s joint company release. Flextronics, who last year partnered with Eastman Kodak Co. to provide digital camera manufacturing, will merge with Solectron to share design resources, engineering, and manufacturing, with promises of better value for the consumer.
In a unanimous Board of Directors agreement, Flextronics will acquire Solectron in a deal worth $3.6 billion. Under the agreement, Solectron will be able to nominate two people to the Board of Directors
'Solectron is an extremely important strategic addition to Flextronics and this combination transforms the landscape of our industry," said Flextronics CEO Mike McNamara in a company press release. "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.'
For the past 18 months, Solectron has prepared for corporate integration. Details about specific products that the companies may develop have not been released. Flextronics’ acquisition of Solectron will be complete by the end of the year, according to the release.