Hon Hai to Acquire US Sanmina-SCI's PC Business Unit
February 22, 2008
Taiwan-based EMS (Electronics Manufacturing Services) provider Hon Hai Precision Industry - trading under the name of Foxconn - announced on February 19 that it has signed a definitive agreement to acquire US-based EMS provider Sanmina-SCI's PC business unit. The value of the deal is estimated between NT$2.5 billion (US$79.8 million; US$1 = NT$31.3) and NT$2.8 billion (US$89.4 million), Taiwan's Economic Daily News reported.
Pursuant to the agreement, Sanmina-SCI will sell its PC assets located in Hungary, the United States, and parts of Mexico to Hon Hai. Via this acquisition deal, Hon Hai will take over Sanmina-SCI's major clients, including IBM and HP. According to Reuters, the deal is slated for conclusion by the end of June 2008.
In related news, China's Lenovo confirmed that the company has signed an MoU (Memorandum of Understanding) to purchase Sanmina-SCI's PC assets in Monterrey, Mexico. The deal, however, is yet to be finalized.