Flextronics to sell semiconductor, network units

NEW YORK: Contract manufacturer Flextronics International Ltd. on Wednesday said it has agreed to sell its network services and semiconductor units to separate buyers for more than $550 million in cash.

Flextronics will merge its Flextronics Networks Services unit into Telavie AS, a Scandinavian network services group owned by private equity firm Altor. An agreement in principle was first announced last month.

In a separate agreement, Flextronics said it will sell its semiconductor division to AMIS Holdings, Inc.

As a result of these two transactions, Flextronics said it will receive an aggregate upfront cash payment of over $550 million, plus additional deferred and contingent payments and a 30 percent ownership stake in the merged network services company.

"These transactions allow Flextronics to concentrate its efforts and resources on the core EMS (electronics manufacturing services) business," the company said in a statement.