Electronics Production |
Benchmark Electronics acquires Pemstar
US based EMS Provider Benchmark Electronics, Inc. and Pemstar Inc. have signed a definitive merger agreement pursuant to which each outstanding share of Pemstar common stock will be converted into the right to receive 0.160 of a common share of Benchmark at transaction close.
Based on Benchmark's closing price of $28.93 on October 16, 2006, the transaction values Pemstar at $4.63 per common share, or approximately $300 million including the assumption of Pemstar net debt. The merger is expected to be a tax-free exchange of common shares.
The merger agreement has been unanimously approved by the boards of directors of both Benchmark and Pemstar. The transaction, which is subject to the approval of Pemstar's shareholders, antitrust approvals and other closing conditions, is expected to close in the first calendar quarter of 2007, subject to the timing of completion of regulatory reviews.
