WAYNE, N.J. — Flextronics is adding GSM, GPRS and Edge handset design capabilities to its outsourcing services through an agreement to acquire Finish original design manufacturer(ODM) Microcell for approximately $80 million.
Founded in 1997, Microcell serves as a third-party design house for mobile phone manufacturers. The company, which has product creation centers in Finland and Denmark, has worked closely with cell phone developers, most notably Ericsson, on the development of phones for Edge, GPRS and GSM applications. The company also has administrative offices in Switzerland and the U.S. as well as a manufacturing operation in Nanjing, China.
Under terms of the acquisition agreement, Flextronics will make an $80 million cash payment. The company will also assume approximately $120 million in net liabilities. The purchase price is subject to Microcell achieving specified levels of earnings through December 2005.
The acquisition is expected to close in October. Flextronics does not expect the acquisition to have a significant impact on sales.
