Solectron Acquires C-MAC in $2.7 Billion Stock Transaction

MILPITAS, Calif., Aug. 9 -- Solectron Corp. and C-MAC have announced a definitive agreement under which Solectron and C-MAC will combine to create a diversified designer and manufacturer of integrated electronic manufacturing solutions. The combination with C-MAC is expected to enhance Solectron's systems-solutions offerings and expand the company's portfolio.

Under the terms of the agreement, Solectron will issue 1.755 shares of Solectron common stock in exchange for each C-MAC common share outstanding. Based on Solectron's Wednesday closing price of $17.20, the transaction is valued at $30.19 per share of C-MAC common stock, or about $2.7 billion, including the assumption of debt. C-MAC Canadian shareholders may choose to receive common shares of Solectron or in a Solectron Canadian subsidiary, exchangeable into Solectron common shares. The boards of directors of both companies have approved the transaction.

C-MAC is a designer and manufacturer of integrated electronic manufacturing solutions for the communications, automotive, instrumentation, defense and aerospace industries. Solectron Corp. provides a full range of manufacturing and supply-chain management services to high-tech electronics companies.