Flextronics has sold its semiconductor division for cash to AMIS Holdings, Inc., parent company of AMI Semiconductor, Inc. In a separate transaction, FNS has merged with Telavie AS, a company wholly-owned by Altor 2003 Fund, a Nordic private equity firm. Flextronics has received a cash payment and has retained a 30% ownership stake in the merged company along with future contingent and deferred purchase price payments.
"These transactions allow Flextronics to concentrate our efforts and resources on the core EMS business, which includes design, vertically-integrated manufacturing services and logistics, and to deliver the services that best meet our customers' needs. We believe these transactions are an excellent fit for all parties involved, and we expect continued success for both the FNS and Flextronics Semiconductor teams moving forward," said Michael Marks, Chief Executive Officer of Flextronics.
As a result of these transactions, Flextronics has received cash in excess of $500 million and a 30% ownership stake in the merged network services company, which has been named Relacom. In addition, Flextronics expects to receive additional contingent and deferred payments from the sale of FNS. Further details related to the sale of these businesses and the expected use of proceeds will be discussed in Flextronics second quarter earnings conference call which will take place in late October 2005.
Headquartered in Singapore (Singapore Reg. No. 199002645H), Flextronics is a leading Electronics Manufacturing Services (EMS) provider focused on delivering innovative design and manufacturing services to automotive, industrial, medical, and technology companies. With fiscal year 2005 revenues of USD$15.9 billion, Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in over 30 countries on five continents. This global presence provides customers with complete design, engineering, and manufacturing resources that are vertically integrated with components to optimize their operations by lowering their costs and reducing their time to market. For more information, please visit www.flextronics.com.
This press release contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements include statements relating to the proposed divestitures of Flextronics Network Services, a wholly-owned subsidiary of Flextronics as well as the semiconductor division of Flextronics. These forward-looking statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements. These risks include that the conditions to closing these transactions may not be satisfied. The forward-looking statements in this press release are based on current expectations and Flextronics assumes no obligation to update these forward-looking statements.
CONTACT: Thomas J. Smach, Chief Financial Officer, +1-408-576-7722, or
Email Contact, or Renee Brotherton, Senior Director of
Corporate Marketing, +1-408-576-7189, or Email Contact,
both of Flextronics
Web site: http://www.flextronics.com//