Solectron make $2.7 billion acquisition

Solectron, the world’s largest electronics contract manufacturer, has announced that it is has agreed to purchase Canada’s C-MAC Industries for $2.7 billion in stock.

Solectron, the world’s largest electronics contract manufacturer, has announced that it has agreed to purchase Canada’s C-MAC Industries for $2.7 billion in stock.

Under terms of the deal, Solectron will offer 1.755 of its shares for each outstanding common share of C-MAC.

Based on Solectron’s closing price of $17.20 yesterday, the deal is valued at $30.19 per share of C-MAC common stock, or approximately $2.7 billion, including the assumption of debt, Solectron said in a statement.

Both boards have approved the transaction, which is expected to close by the end of 2001.

Solectron said it expects to generate about $60 million to $120 million in synergies through cost savings and revenue opportunities because of the transaction. Solectron also said it expects the deal to add to its fiscal 2002 earnings.