Flextronics International Ltd. (FLEX), a technology company in the printed circuit boards sector, Friday announced the completion of the sale of its equity investment and note receivable in privately-held Aricent for a total cash consideration of $255 million.
Aricent is a technology and services company focused exclusively on communications products and services. Deutsche Bank Securities Inc. served as financial advisor to Flextronics for the Aricent sale.
Commenting on the completion of the sale, Paul Read, chief financial officer of Flextronics, stated, "As we have previously announced, it is our intention to monetize non-core assets and benefit from the cash generated from those dispositions. We are pleased to have successfully executed this transaction, which increases our cash position and further strengthens our balance sheet."
According to the company, it has deleveraged by approximately $1.4 billion last year, including $1.1 billion of debt paydown and the reduction of A/R sales and securitizations by about $277 million. These strategic steps significantly improved the company's financial flexibility, while maintaining its cash balance over the last year at the approximate level of $1.7 billion, Flextronics noted.
The company also said that its recent deleveraging events included the successful repurchase of approximately $200 million of both its 6.5% Senior Subordinated Notes and its 6.25% Senior Subordinated Notes, including a consent to modify the indentures for both notes, which was completed in the quarter ended on July 3. In addition, the company retired at maturity $195 million of its 0% Convertible Junior Subordinated Notes on July 31.
FLEX closed Thursday's trading at $7.29, up $0.19, on a volume of 12.08 million shares.
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