defa14a
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No.  )
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SOLECTRON CORPORATION
 
(Name of Registrant as Specified In Its Charter)
 
 
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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The following communication was made available to Solectron employees after the close of business on June 7, 2007.
Building a Global Leader: Flextronics and Solectron June 6, 2007

 

The merger is good for Solectron Establishes clear leadership in the global EMS industry Creates most diversified EMS company across end- markets, customers, capabilities, and locations Significant benefit to customer competitiveness More innovation Lower costs Substantial synergies driven by clear, achievable cost opportunities

 

Solectron strengths sought by Flextronics Complex manufacturing, BTO and CTO Aftermarket services High-end communications and computing market segment Growing presence in emerging market segments Industrial, Medical, Automotive Balance sheet Focus and successful implementation of Lean Six Sigma operational excellence Supply chain expertise

 

The transaction leads to Global Supply Chain Leadership Creates a $30+ billion vertically integrated EMS company Operating in 35 countries Approximately 200,000 employees, including 4,000 design engineers Diversified Blue Chip Customer Base Leader in Consumer & Mobile Electronics Diversified / Global Platform Leader in High End Computing & Communications Market Strong Financial Profile & Balance Sheet World Class After- Market Support & Repair Services Superior Design & ODM Offering Leading Vertical Integration Capabilities

 

Enhanced Capabilities There's a complementary strategic fit between the companies The combination of Flextronics and Solectron will enable us to better serve our customers as we provide a broad range of services across a larger global network. End-to-End Customer Solution Design and ODM Vertical Integration Assembly Packaging Build to Order Configure to Order Logistics After-Market Support / Repair High-end BTO/CTO After-market sales & service support

 

We support a more diversified customer base Flextronics diversifies its business with existing customers while adding new top-tier customers to its portfolio. Solectron gets exposure to consumer products, which provides significant economies of scale. Top Ten: > 60% Only Sony Ericsson > 10%

 

We gain a more diversified position across multiple market segments Note: Data represents last quarter (March 2007) annualized as per company filings. Over $30 billion of combined company revenues, well-diversified across target segments Pro Forma 10% 23% 12% 31% 24% 34% 41% 13% 12% 20% 19% 12% 30% 19% Computing Consumer Digital Infrastructure Mobile Industrial, Auto, Medical & Other

 

When the deal is done, it's a winning combination... The transaction provides Solectron's customers with: an enhanced portfolio of design and vertically integrated capabilities greater scale expanded supply chain leverage The combination allows us to transcend what we have accomplished individually, and significantly reshapes and reenergizes our industry. We're very enthusiastic about the strategic combination and believe it will create significant value for our customers, employees and shareholders.

 

Safe Harbor Statement
     This communication contains forward-looking statements within the meaning of federal securities laws relating to both Flextronics and Solectron. These forward-looking statements include statements related to the expected timing for closing of the acquisition of Solectron by Flextronics, the expected synergies and benefits to the combined company and its customers from the acquisition, the impact of the acquisition on Flextronics’s earnings per share, the ability of Flextronics to successfully integrate the businesses of the combined company, projected revenue and earnings and related growth and other statements regarding the anticipated future performance of the combined company and the industry in which it operates. These forward-looking statements are based on current assumptions and expectations and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements. These risks include the possibility that the acquisition may not be completed as planned or at all, difficulties or delays in obtaining regulatory or shareholder approvals for the proposed transaction, the possibility that the revenues, cost savings, growth prospects and any other synergies expected from the proposed transaction may not be fully realized or may take longer to realize than expected, that growth in the EMS business may not occur as expected or at all, the dependence of the combined company on industries that continually produce technologically advanced products with short life cycles, the ability of the combined company to respond to changes and fluctuations in demand for customers’ products and the short-term nature of customers’ commitments, and the other risks affecting Flextronics, Solectron and the combined company as described in the section entitled “Risk Factors” in the joint proxy statement/prospectus to be provided to Flextronics’s and Solectron’s shareholders as well as those described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in their quarterly and annual reports and other filings made by Flextronics and by Solectron with the U.S. Securities and Exchange Commission. The forward-looking statements in this press release are based on current expectations and neither Flextronics nor Solectron assumes any obligation to update these forward-looking statements, except as required by law. Investors are cautioned not to place undue reliance on these forward-looking statements.
Additional Information and Where to Find it:
     In connection with the Merger, Flextronics intends to file with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 that will contain a Joint Proxy Statement/Prospectus. Investors and security holders are urged to read the Registration Statement and the Joint Proxy Statement/Prospectus carefully when they become available because they will contain important information about Flextronics, Solectron and the proposed merger. The Joint Proxy Statement/Prospectus and other relevant materials (when they become available), and any other documents filed with the SEC, may be obtained free of charge at the SEC’s web site www.sec.gov. In addition, investors and security holders may obtain a free copy of other documents filed by Flextronics or Solectron by directing a written request, as appropriate, to Solectron at 847 Gibraltar Drive, Milpitas, CA 95035, Attention: Investor Relations, or to Flextronics’s U.S. offices at 2090 Fortune Drive, San Jose, CA 95131, Attention: Investor Relations. Investors and security holders are urged to read the Joint Proxy Statement/Prospectus and the other relevant

 

 

materials when they become available before making any voting or investment decision with respect to the proposed merger.
     This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
          Participants in the Solicitation:
Flextronics, Solectron and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in connection with the proposed merger. Information regarding the interests of these directors and executive officers in the proposed transaction will be included in the Joint Proxy Statement/Prospectus referred to above. Additional information regarding the directors and executive officers of Flextronics is also included in Flextronics’s proxy statement (Form DEF 14A) for the 2006 annual general meeting of Flextronics shareholders, which was filed with the SEC on July 31, 2006. This document is available free of charge at the SEC’s website (www.sec.gov) and by contacting Flextronics Investor Relations at Flextronicsinvestorrelations@flextronics.com. Additional information regarding the directors and executive officers of Solectron is also included in Solectron’s proxy statement (Form DEF 14A) for the 2007 annual stockholders meeting of Solectron, which was filed with the SEC on December 4, 2006. This document is available free of charge at the SEC’s website (www.sec.gov) and by contacting Solectron at 847 Gibraltar Drive, Milpitas, CA 95035, Attention: Investor Relations.