The Singapore-based electronics manufacturing services provider Flextronics and Google-owned Motorola Mobility said Monday that they have signed a definitive agreement designed to streamline supply chain operations between the two entities.
The agreement will see Flextronics acquire Motorola's manufacturing operations in Tianjin, China, as well as assume the management and operation of its Jaguariuna, Brazil facility.
Employees and assets at both locations will transfer to Flextronics after the transaction closes. The agreement also includes a manufacturing and services agreement for Android and other mobile devices. The companies expect to complete closing activities by the first half of 2013, subject to customary closing conditions including regulatory approvals.
"We are very pleased to announce today's agreement and expand our long-standing collaborative and successful relationship with Motorola Mobility," said Mike McNamara, chief executive officer for Flextronics. "We look forward to leveraging our extensive manufacturing expertise and supply chain solutions to provide Motorola Mobility with increased value."
"The agreement with Flextronics is an important step forward for us in transforming our overall supply chain into a competitive advantage for Motorola Mobility,” said said Mark Randall, senior vice president of supply chain and operations at Motorola Mobility. “Flextronics has been our partner for many years, and their expertise and experience in manufacturing will enable us to focus on other areas of the supply chain where we can add the most value.”
Financial terms of the agreement were not disclosed. - Eric Johnson