SINGAPORE, Feb. 7 /PRNewswire-FirstCall/ -- Flextronics (Nasdaq: FLEX) today announced plans to acquire the FRIWO Mobile Power (FMP) business unit of CEAG AG, a global market leader for power supplies and chargers for mobile telephones. FMP develops, produces and markets power supply and charging devices for mobile applications in the telecommunications sector. FMP will become part of Flextronics'components business unit Vista Point Technologies, which designs, builds and markets refined microsystems for end users, including camera modules, antennas, radio frequency (RF) modules, and thin film transistor (TFT) displays and power supplies. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close during Flextronics' first quarter ending June 30, 2008.
Flextronics will support CEAG's remaining business unit, FRIWO Power Solutions (FPS), through an EMS partnership whereby the Vista Point Technologies business unit will provide manufacturing requirements for FPS that are currently managed by FMP, which operates three manufacturing facilities in China and R&D centers in Germany and China.
"This acquisition will significantly expand our capabilities in the area of low power (<10 Watts) AC/DC power supplies and will establish us as one of the top two mobile charger suppliers worldwide," said Bob Roohparvar, president of Vista Point Technologies. "Additionally, this acquisition will add significant relationships with leading mobile phone OEMs, will strengthen our vertical integration capabilities through the addition of magnetic (transformer) manufacturing and cable assembly and will add three power supply manufacturing facilities to our current Dongguan location. This is a strategic acquisition that is synergistic with our power supplies strategy and we look forward to bringing the FMP team onboard with our business unit."
"This transaction fits our acquisition strategy perfectly, which is to add various component technologies and be the number one or two global supplier for each of the component technologies we offer," said Mike McNamara, chief executive officer of Flextronics. "In relation to Flextronics, these types of acquisitions are typically small, as is the case with FMP. The acquisition price is approximately US$85 million for which we will be acquiring annual revenues of approximately US$375 million at slightly higher than corporate average operating margins."
Headquartered in Singapore (Singapore Reg. No. 199002645H), Flextronics is a leading Electronics Manufacturing Services (EMS) provider focused on delivering complete design, engineering and manufacturing services to automotive, computing, consumer digital, industrial, infrastructure, medical and mobile OEMs. With the acquisition of Solectron, pro forma fiscal year 2007 revenues from continuing operations are more than US$30.0 billion. Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in 30 countries on four continents. This global presence provides design and engineering solutions that are combined with core electronics manufacturing and logistics services, and vertically integrated with components technologies, to optimize customer operations by lowering costs and reducing time to market. For more information, please visit http://www.flextronics.com.
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements include statements related to plans, projections and estimates regarding the acquisition, including future financial and operating results. These forward-looking statements are based on current assumptions and expectations and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements. These risks include that the revenues, cost savings, growth prospects and any other synergies expected from the acquisition may not be fully realized due to difficulties integrating the businesses, operations and product lines of FMP or may take longer to realize than expected; that the transaction may not close when expected or at all if certain regulatory approvals are not obtained; and the other risks affecting Flextronics as described under "Business -- Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our quarterly and annual reports and other filings with the U.S. Securities and Exchange Commission. The forward-looking statements in this communication are based on current expectations and Flextronics assumes no obligation to update these forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements.
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