Flextronics sells of divisions

As previously announced, Flextronics Network Services will merge with Telavie AS, a company wholly- owned by Altor 2003 Fund, a Nordic private equity firm. Under the terms of the definitive agreement, Flextronics will receive an upfront cash payment, deferred and contingent payments, and will also retain a 30% ownership stake in the merged company. In a separate agreement, Flextronics will sell its semiconductor division for cash to AMIS Holdings, Inc., parent company of AMI Semiconductor, Inc. "I am thrilled to announce we have finalized our FNS deal with Altor and that we have found a perfect fit with AMI as the company to purchase our semiconductor division," said Michael Marks, Chief Executive Officer of Flextronics. "These transactions allow Flextronics to concentrate its efforts and resources on the core EMS business, which includes design, vertically- integrated manufacturing services and logistics, in order to deliver the services that best meet our customers' needs. We believe these transactions are an excellent fit for all parties involved, and we expect continued success for both the FNS and Flextronics Semiconductor teams moving forward." As a result of these two transactions, Flextronics will receive an aggregate upfront cash payment in excess of $550 million plus additional deferred and contingent payments and a 30% ownership stake in the merged network services company. Both transactions are expected to close before the end of the September 30 fiscal quarter and are subject to customary closing conditions, including certain governmental approvals.