Summary
Flextronics International Ltd. (FLEX) announced on October 28, 2004, that it has entered into an agreement to acquire Agilent Technologies Inc.'s camera module business. This strategic move involves a cash payment of approximately $26 million, with $14 million due at closing and the remainder paid quarterly over twelve months. Additionally, Flextronics may pay up to $13 million in contingent consideration based on performance milestones over three years. The acquisition is expected to bolster Flextronics' revenue by over $200 million in its first year. The deal includes the purchase of Agilent's existing inventory, which will be paid for quarterly and settled by the end of 2005. The transaction is subject to customary closing conditions, including antitrust approval, and is anticipated to be finalized by the end of the calendar year 2004.
Key Highlights
- 1Flextronics to acquire Agilent's camera module business.
- 2Transaction value of approximately $26 million in cash.
- 3Includes initial payment of $14 million and twelve quarterly installments.
- 4Potential for up to $13 million in contingent performance-based payments.
- 5Acquisition expected to add over $200 million in revenue in the first year.
- 6Includes purchase of existing Agilent inventory on hand and on order.
- 7Deal is subject to standard closing conditions, including antitrust approval.