Celestica Inc today announced that it has entered into a strategic manufacturing agreement with Lucent Technologies. As part of this transaction, Celestica will become Lucent’s primary electronics manufacturing services (EMS) provider and will be acquiring certain inventory, real estate and operating assets.
According to a statement the deal will include a five-year supply agreement worth up to US$10 billion in total revenue.
The purchase price is expected to be between US$550 – $650 million. Further terms will be disclosed upon the close of the transaction and is subject to normal closing conditions, including regulatory approvals.
This strategic manufacturing agreement will see Celestica become the leading EMS provider for Lucent’s North American demand for switching, access and wireless networking systems products.
Celestica will provide a range of electronics manufacturing services such as printed circuit board assembly and test; prototype build; system assembly; repair; enclosure; backplane and supply chain management for the current and future generations of these products.
A portion of this workload will be transferred to other Celestica facilities around the world.