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ANGLETON, Texas Benchmark Electronics, Inc., and Pemstar Inc. signed a definitive merger agreement, expected to be a tax-free exchange of common shares. The transaction puts Pemstar's value at $300 million, including assumption of the company's net debt. Pemstar reported fiscal year 2006 revenues at $871 million.
Benchmark and Pemstar share broad, complementary customer bases and serve diversified end markets, said Cary Fu, CEO at Benchmark, adding that the acquisition strengthens his company's design engineering and systems integration globally. Pemstar, founded in 1994, operates 11 design, manufacturing, and fulfillment locations, with about 3,500 employees. Benchmark currently operates in 16 locations.
Unanimously approved by the board of directors at each company, the merger awaits approval from the Pemstar shareholders, antitrust regulatory bodies, and other closing conditions. It should close Q'01 2007. Credit Suisse provided financial advice to Benchmark; Needham & Company advised Pemstar financially. Cravath, Swaine, & Moore LLP acted as legal advisor for Benchmark; Dorsey & Whitney LLP served Pemstar.