Stellar Microelectronics in Valencia has been acquired by Flextronics International Ltd., a move that gives the global manufacturer additional capabilities in the aerospace, defense and medical products markets. Flextronics saw Stellar as an attractive purchase for its microelectronics products and services that adds value for existing and new customers. Terms of the deal between Stellar and Flextronics, headquartered in Singapore, were not disclosed. The transaction is expected to close by the end of April. Stellar employs about 250 area workers and has annual revenues of just less than $100 million. It’s unclear whether the new ownership will result in additional hiring. “We really liked the operation they have built there,” said Steve Coghlan, vice president of corporate development for Flextronics. In late 2008, Stellar moved into a new 140,000-square-foot facility. “(The building) is only three and half years old and it is state of the art,” Coghlan added. Attempts to reach Stellar CEO Greg Horton were not successful. In a prepared statement Horton said that Flextronic’s complementary service and reputation in the electronic manufacturing industry is an advantageous match for Stellar’s customers and employees. “This transaction will provide Stellar’s customers increased global scale and expanded supply chain leverage along with the benefits of an increased, low-cost global footprint,” he said. Flextronics, with U.S. headquarters in Milpitas, Calif., is traded on the NASDAQ exchange. It operates in 30 countries and supplies the defense and medical device industries. It also serves the consumer products, industrial and automotive markets. For the quarter ending Dec. 31, Flextronics reported net income of $102.2 million, or $0.14 per share, on revenues of $7.5 billion. For the same period in the prior year, the company reported net income of $198.3 million, or $0.26 per share, on revenues of $7.4 billion. Stellar is the first acquisition Flextronics has done in several years. The purchase gives Flextronics additional capabilities to service its defense and medical device customers, Coghlan said, noting Stellar’s own top-tier customers were a draw. Stellar is a privately-owned company that dates back to the 1970s, when it started as ELMO Semiconductor. Billionaire entrepreneur Alfred Mann bought the company in 2003. Stellar is FDA registered and compliant with the International Traffic in Arms Regulations that control the export and import of defense-related services.
Flextronics International Makes a Stellar Acquisition
