Celestica Forges Strategic Alliance with Avaya
TORONTO, Feb. 22 -- Celestica Inc. has entered into a global strategic alliance with Avaya, as Avaya's primary electronics manufacturing services (EMS) provider. Avaya supplies enterprise communications systems. As part of this arrangement, Celestica has signed a definitive agreement to acquire Avaya's manufacturing, repair and supply chain operations in Denver, Colo., and Little Rock, Ark., and certain other operating assets.
The deal will include a five-year global supply agreement worth approximately $4 billion in total expected revenue. The aggregate purchase price is about $200 million. About 1400 Avaya employees are expected to join Celestica as part of this transaction. Further terms were not disclosed. The deal is expected to close in a phased approach throughout the second and third quarters and is subject to normal closing conditions, including regulatory approvals and union ratification.
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