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 December 3, 1999

Flextronics acquires Dii in deal worth $2.4 billion

NIWOT – In one of Boulder County’s biggest merger deals, Dii Group announced an agreement to be acquired by rival electronics manufacturer Flextronics International Ltd. for $2.4 billion.

Set for completion in April 2000, the stock merger agreement is both the largest for a Boulder County company and one of the largest in the electronics manufacturing industry. It will enable San Jose, Calif-based Flextronics to expand its services and global presence and to gain a competitive edge in the industry, challenging larger companies such as Solectron Corp., SCI Systems and Celestica Inc.

After approval of a proposed two-for-one stock plan in which each Dii Group share will be exchanged for 0.805 Flextronics’ shares, Dii shareholders will own 34 percent of the combined company, making it the fourth-largest provider of electronics manufacturing services.

Dii will continue its current operations under the Flextronics name. Ronald Budacz, chairman and chief executive officer of Dii, will become vice chairman of Flextronics.

Neither Dii nor Flextronics returned Business Report calls for comment on the merger.

Both companies design and build circuit boards and other equipment for computer, electronics and telecommunications. Headquartered in Niwot, Dii Group is parent to a national and international network of companies that have experienced rapid growth during the past year.

Third-quarter revenues were reported at $365.1 million, a 77 percent increase over the past year. And just in the past month, the company’s stock price has nearly doubled, rising from approximately $35 per share in October to slightly more than $60 last month.

The electronics manufacturer currently employs about 45 people at its Niwot headquarters and another 500 at its Gunbarrel-based Dovatron plant. About 300 people are employed at the company’s Del Camino Dovatron plant, east of Longmont, in Weld County. Executives could not be reached to comment on plans for the company’s local headquarters and subsidiaries.

Globally, Dii Group and its subsidiaries employ 12,000 people. The company operates 22 plants nationwide. Others are located in Mexico, Ireland, England, Singapore and Malaysia.

Dii Group has provided services for such major corporate clients as IBM Corp. and Hewlett-Packard Co. Recently, the company purchased an H-P division based in Greeley. Flextronics’ client base includes Royal Phillips Electronics, Microsoft Corp. and Cisco Systems.

The combined value of both companies will be about $4.3 billion. The purchase increases the total number of employees to 39,000 globally.

NIWOT – In one of Boulder County’s biggest merger deals, Dii Group announced an agreement to be acquired by rival electronics manufacturer Flextronics International Ltd. for $2.4 billion.

Set for completion in April 2000, the stock merger agreement is both the largest for a Boulder County company and one of the largest in the electronics manufacturing industry. It will enable San Jose, Calif-based Flextronics to expand its services and global presence and to gain a competitive edge in the industry, challenging larger companies such as Solectron Corp., SCI Systems and Celestica Inc.

After approval of a proposed two-for-one…

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