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© kritchanut dreamstime.com Electronics Production | September 09, 2015

Flex acquires NEXTracker

EMS-provider Flex – former Flextronics – has entered into a definitive agreement to acquire NEXTracker, a player in smart solar tracking solutions.
Under the terms of the agreement, the initial cash consideration will be approximately USD 245 million, net of cash acquired, with an additional USD 85 million of potential contingent consideration upon achievement of future performance targets. The acquisition is expected to close early in the December 2015 quarter.

With the acquisition, Flex will grow its Flex Energy business, and the addition of NEXTracker is expected to contribute to its sales, growth and cash flow generation.

"Together with our existing Energy capabilities, the NEXTracker solutions will enable Flex to further enhance our sketch-to-scale solar offerings. Our strong, free cash flow generation enables margin-accretive acquisitions like this to be completed, while at the same time allowing us to remain committed to maximizing shareholder value through returning over 50% of free cash flow to our shareholders," said Mike McNamara, CEO of Flex.

"Joining Flex will enable NEXTracker to accelerate its growth while leveraging our best-in-class, innovative technologies, and a shared passion for advancing the future of renewable energy," said NEXTracker's CEO Dan Shugar. "Flex has a solid global infrastructure, an experienced team, and world-class capabilities that will allow us to scale our solar solutions and help take our business to the next level."

Upon completion of the deal, NEXTracker will operate as a subsidiary, retaining its existing brand under the continued leadership of Dan Shugar.

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