February 7, 2008
Flextronics today announced plans to acquire the FRIWO Mobile Power (FMP) business unit of CEAG AG, a global market leader for power supplies and chargers for mobile telephones. FMP develops, produces and markets power supply and charging devices for mobile applications in the telecommunications sector.
FMP will become part of Flextronics’components business unit Vista Point Technologies, which designs, builds and markets refined microsystems for end users, including camera modules, antennas, radio frequency (RF) modules, and thin film transistor (TFT) displays and power supplies. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close during Flextronics’ first quarter ending June 30, 2008.
Flextronics will support CEAG’s remaining business unit, FRIWO Power Solutions (FPS), through an EMS partnership whereby the Vista Point Technologies business unit will provide manufacturing requirements for FPS that are currently managed by FMP, which operates three manufacturing facilities in China and R&D centers in Germany and China.
“This acquisition will significantly expand our capabilities in the area of low power (<10 Watts) AC/DC power supplies and will establish us as one of the top two mobile charger suppliers worldwide,” said Bob Roohparvar, president of Vista Point Technologies. “Additionally, this acquisition will add significant relationships with leading mobile phone OEMs, will strengthen our vertical integration capabilities through the addition of magnetic (transformer) manufacturing and cable assembly and will add three power supply manufacturing facilities to our current Dongguan location. This is a strategic acquisition that is synergistic with our power supplies strategy and we look forward to bringing the FMP team onboard with our business unit.”
“This transaction fits our acquisition strategy perfectly, which is to add various component technologies and be the number one or two global supplier for each of the component technologies we offer,” said Mike McNamara, chief executive officer of Flextronics. “In relation to Flextronics, these types of acquisitions are typically small, as is the case with FMP. The acquisition price is approximately US$85 million for which we will be acquiring annual revenues of approximately US$375 million at slightly higher than corporate average operating margins.”
Source: Flextronics
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