Flextronics Receives $255 Million From Sale of its Equity Investment

Flextronics announced that it has completed the sale of its equity investment and note receivable in Aricent, a privately-held global innovation, technology and services company focused exclusively on communications products and services. The total cash consideration received by Flextronics amounted to $255 million.

"As we have previously announced, it is our intention to monetize non-core assets and benefit from the cash generated from those dispositions. We are pleased to have successfully executed this transaction, which increases our cash position and further strengthens our balance sheet," said Paul Read, Chief Financial Officer of Flextronics. "During the past year, we have delivered by approximately $1.4 billion, which includes $1.1 billion of debt pay-down and the reduction of A/R sales and securitizations by approximately $277 million. These strategic steps have significantly improved our financial flexibility, while maintaining our cash balance over the last year at the approximate level of $1.7 billion."

Recent deleveraging events included the successful repurchase of approximately $200 million of both its 6.5 percent senior subordinated notes and its 6.25 percent senior subordinated notes, including a consent to modify the indentures for both notes, which was completed in the quarter ending July 3, 2009. In addition, the company retired at maturity $195 million of its 0 percent convertible junior subordinated notes on July 31, 2009.

Deutsche Bank Securities Inc served as financial advisor to Flextronics for the Aricent sale.

www.flextronics.com