Flextronics Completes the Sale of Software Development
and Solutions Business to KKR
Singapore, September 5, 2006–
Flextronics International Ltd. (NASDAQ: FLEX) and Kohlberg
Kravis Roberts & Co. ("KKR") today announced
that they have completed the sale of Flextronics’
software development and solutions business to an affiliate
of KKR as part of a previously announced transaction.
Flextronics has retained a 15% equity stake in the software
business and continues as an important business partner
and customer. Sequoia Capital has also acquired a 9%
stake. The transaction values the entire business at
approximately $900 million.
Software Chief Executive Officer Ash Bhardwaj and his
management team will continue to lead the software business,
which is expected to announce a new name in the near
future.
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, automotive, computing, consumer digital,
industrial, infrastructure, medical and mobile OEMs.
With fiscal year 2006 revenues from continuing operations
of US $15.3 billion, Flextronics helps customers design,
build, ship, and service electronics products through
a network of facilities in over 30 countries on five
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 KKR
KKR is one of the world’s oldest and most experienced
private equity firms specializing in management buyouts,
with offices in New York, Menlo Park, California, London,
Paris, Hong Kong, and Tokyo. Over the past year, KKR
has committed over $2.5 billion to technology businesses,
including SunGard Data Systems, Avago Technologies,
and the Semiconductors business of Royal Philips Electronics
(pending), which has been renamed NXP. These are considered
the three largest private equity technology investments
in history, with transaction prices of $11.8 billion,
$2.8 billion, and €8.3 billion, respectively. Other
KKR technology industry investments include: Amphenol,
RELTEC, Wincor Nixdorf, Tenovis, and Zhone Technologies.
Over the past thirty years, KKR has invested in more
than 140 transactions with a total value of approximately
US$200 billion. For more information, please visit www.kkr.com.
About Sequoia Capital
Since 1972, Sequoia Capital has provided early and growth
stage capital to founders and executives who have turned
ideas into companies of enduring value. As the "Entrepreneurs
Behind the Entrepreneurs", Sequoia Capital's Partners
have worked with accomplished innovators and operators
who have built companies such as Agile Software, Apple
Computer, Cisco Systems, Flextronics, Google, Informix,
Linear Technology, LSI Logic, Microchip, NetScaler,
NetScreen, Network Appliance, nVidia, Oracle, PayPal,
and Yahoo! To learn more about Sequoia Capital visit
www.sequoiacap.com.
Flextronics Contacts:
Thomas J. Smach
Chief Financial Officer
+1.408.576.7722
investor_relations@flextronics.com
Renee Brotherton
Senior Director of Corporate Marketing
+1.408.576.7189
renee.brotherton@flextronics.com
KKR Contacts:
US-Mark Semer or Molly Morse
Kekst and Company
+212-521-4802 or +212-521-4826
Asia – Richard Barton
Gavin Anderson & Company
+852 2218 9988 or +852 9308 1056
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