Flextronics completes acquisition of International DisplayWorks, Inc.
Dec 01, 2006
Flextronics International Ltd. (Nasdaq: FLEX) announced the completion of the acquisition of International DisplayWorks, Inc. (Nasdaq: IDWK). IDW stockholders will receive 0.5653 of a Flextronics ordinary share for each share of IDW common stock. The enterprise value of the transaction is approximately $243 million.
Mike McNamara, chief executive officer of Flextronics, said, "One of our company's central growth strategies for augmenting our services offering is the thoughtful acquisition of synergistic companies. IDW is an ideal fit for Flextronics in many ways. It strengthens our overall vertical integration capability and significantly adds to our ability to design and manufacture small form factor liquid crystal displays. We are extremely pleased with the completion of this acquisition and are eager to bring the talented IDW team onboard with Flextronics, including Tom Lacey, who will head our components group."
Tom Lacey, chairman and chief executive officer of IDW, said, "Flextronics is unmatched in its ability to offer industry-leading components technologies. We are pleased to be joining an organization that not only offers IDW employees an opportunity to be part of a leading, respected global employer but to also extend to our customers the tremendous economies of scale that can only come from an operationally efficient organization such as Flextronics."
Lacey added, "The management team and the board are pleased with the value that this transaction provides our shareholders. In fact, the voting shareholders overwhelmingly supported the merger by voting more than 96% in favor of the merger."
As previously announced, IDW stockholders approved the transaction at a special meeting held on November 28, 2006. Effective after the close of market today, trading in IDW common stock on the NASDAQ Global Market will cease. Each registered IDW stockholder will receive a letter of transmittal that will inform them where to deliver IDW stock certificates in order to receive Flextronics ordinary shares. IDW stockholders who hold their shares in street name will not receive a letter of transmittal; these stockholders' accounts will be credited with their new Flextronics ordinary shares within approximately three business days. Flextronics expects to issue approximately 26.2 million shares in connection with the acquisition.
The acquisition of IDW broadens Flextronics' components business platform, expands and diversifies the company's components offering, and increases its customer portfolio.