Summary
Flextronics International Ltd. (FLEX) has reported the completion of its acquisition of Chatham Technologies, Inc. as of August 31, 2000. This strategic move, structured as a tax-free reorganization and accounted for under the pooling of interests method, significantly expands Flextronics' capabilities by integrating Chatham's expertise in providing integrated electronic packaging systems, particularly for the communications industry. This acquisition is expected to enhance Flextronics' offerings and market position within its sector. The terms of the merger involved an exchange ratio where each share of Chatham common stock was converted into approximately 0.487 shares of Flextronics ordinary shares. Cash will be provided in lieu of fractional shares. Additionally, outstanding options to purchase Chatham stock have been assumed and converted into options to purchase Flextronics shares, with adjusted exercise prices. The company has issued approximately 7.6 million Flextronics ordinary shares and assumed rights for an additional 715,000 shares as a result of this transaction.
Key Highlights
- 1Flextronics International Ltd. has completed the acquisition of Chatham Technologies, Inc. on August 31, 2000.
- 2The acquisition was structured as a merger, making Chatham a wholly owned subsidiary of Flextronics.
- 3The transaction is accounted for as a 'pooling of interests' for accounting purposes.
- 4The merger is structured to be a 'tax-free' reorganization for federal income tax purposes.
- 5Chatham Technologies specializes in integrated electronic packaging systems for the communications industry, a business that will continue under Flextronics.
- 6Chatham shareholders received approximately 0.487 Flextronics ordinary shares per Chatham share, with cash for fractional shares.
- 7Flextronics issued approximately 7.6 million ordinary shares and assumed options representing rights to purchase approximately 715,000 additional shares.