Flextronics to Acquire Stellar Microelectronics

Flextronics (NASDAQ: FLEX) announced today that it has entered into a definitive agreement to acquire Stellar Microelectronics, a full service Electronics Manufacturing Services (EMS) provider based in Valencia, Calif., specializing in advanced custom packaging solutions utilizing the latest microelectronics technologies for the aerospace, defense and medical manufacturing markets.

Stellar Microelectronics' annual revenue run rate is just under $100 million. Additional terms of the deal were not disclosed.

"We are very pleased to announce this agreement with Stellar Microelectronics," said Paul Humphries, group president of Flextronics High Reliability Solutions. "This acquisition underscores Flextronics' strategic commitment to expand our service offering in the aerospace, defense and medical markets, and we believe the combined companies will strengthen the services we can provide our customers in this space. We look forward to adding Stellar Microelectronics' employees and industry-leading customers to the organization," Humphries added.

Upon completion of the acquisition, Flextronics will increase its service offering to include microelectronic design and manufacturing services to support customers with unique U.S. manufacturing needs, including those requiring certifications such as AS9100C, ISO 9001:2008 and ISO13485:2003. Stellar Microelectronics' Valencia operation is also FDA registered and ITAR compliant. All certifications, registrations and compliances will be maintained in order to continue to serve all aerospace, defense and medical customer requirements.

Greg Horton, chief executive officer at Stellar Microelectronics, said, "Flextronics' proven track record, complementary service offering and outstanding reputation as a global leader in the EMS industry is an advantageous match for our customers and employees. This transaction will provide Stellar's customers increased global scale and expanded supply chain leverage along with the benefits of an increased, low cost global footprint."

Completion of the transaction, which is subject to certain closing conditions, is expected to take place by the end of April.
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