According to Economic Daily News of Taiwan, Taiwanese Arima announced on September 20 that it has signed a letter of intent with Taiwanese EMS (Equipment Manufacturing Services) supplier Flextronics, whereby Arima will sell its notebook PC and server business units to Flextronics for US$191.5 million. The deal includes Arima's subsidiary in Wujiang, China, as well as Arima's entire stakes in subsidiaries based in Japan, Texas, California and the United Kingdom. Contract manufacturing orders for Arima's major notebook PC client Gateway will also be transferred to Flextronics. Although the closing date is not yet finalized, the deal is expected to take effect by year-end 2007.