|Flextronics and Motorola Mobility Partner to Streamline Supply Chain Operations|
SINGAPORE and LIBERTYVILLE, Ill., Dec. 10, 2012 /PRNewswire via COMTEX/ --Flextronics (NASDAQ: FLEX) and Motorola Mobility LLC, owned by Google, announced today that the companies have signed a definitive agreement, under which Flextronics will acquire Motorola's manufacturing operations in Tianjin, China, and will also assume the management and operation of its Jaguariuna, Brazil, facility. Employees and assets at both locations will transfer to Flextronics after the transaction closes. The agreement also includes a manufacturing and services agreement for Android and other mobile devices. The companies expect to complete closing activities by the first half of 2013, subject to customary closing conditions including regulatory approvals. Financial terms of the agreement are not being disclosed.
"We are very pleased to announce today's agreement and expand our long-standing collaborative and successful relationship with Motorola Mobility," said Mike McNamara, chief executive officer, Flextronics. "We look forward to leveraging our extensive manufacturing expertise and supply chain solutions to provide Motorola Mobility with increased value."
"The agreement with Flextronics is an important step forward for us in transforming our overall supply chain into a competitive advantage for Motorola Mobility. Flextronics has been our partner for many years, and their expertise and experience in manufacturing will enable us to focus on other areas of the supply chain where we can add the most value," said Mark Randall, senior vice president, supply-chain and operations for Motorola Mobility LLC.
A conference call hosted by Flextronics's management will be held tomorrow, December 11, at 5:00 a.m. (PT) / 8:00 a.m. (ET) to discuss today's announcement. The conference call will be broadcast via the Internet and may be accessed by logging on to the Company's website at www.flextronics.com. Additional information in the form of a slide presentation may also be found on the Company's site. A replay of the broadcast will remain available on the Company's website afterwards.
About Flextronics 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 aerospace and defense, automotive, computing, consumer, industrial, infrastructure, medical, energy and mobile OEMs. 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/.
About Motorola Mobility Motorola Mobility, owned by Google, fuses innovative technology with human insights to create experiences that simplify, connect and enrich people's lives. Our portfolio includes converged mobile devices such as smartphones and tablets; wireless accessories; end-to-end video and data delivery; and management solutions, including set-tops and data-access devices. For more information, visit motorola.com/mobility.
Flextronics Safe Harbor Statement This press release contains forward-looking statements, including statements regarding the plans and projections for the transaction. These forward-looking statements are based on current assumptions and expectations and involve risks and uncertainties that could cause the actual results to differ materially from those expressed or implied by such statements. These risks include that the business prospects may not be fully realized due to uncertain market conditions; difficulties that may arise from integrating the business and effectively managing the acquired operations; and the overall impact on our margins and profitability resulting from this transaction. Additional information concerning these and other risks are described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our reports on Form 10-K and 10-Q that we file with the U.S. Securities and Exchange Commission. The forward-looking statements in this press release are based on current expectations and Flextronics assumes no obligation to update these forward-looking statements.