Sanmina Corp., a leading electronics contract manufacturer based in San Jose, today announced an agreement to acquire the San Jose systems-integration and fulfillment operation of Lucent Technologies Inc.
The operation, which includes an ISO 9001 manufacturing facility, will manufacture messaging systems sold to communications service providers by Lucent, and enterprise messaging systems sold by Avaya, the former Enterprise Networks Group that will be spun off from Lucent in September.
The deal is expected to close by Sept. 30. Terms of the transaction and multi-year manufacturing services agreement were not disclosed. It is expected that the 140 employees currently working in the operation will become employees of Sanmina.
On-site manufacturing processes encompass final system assembly, system level test, custom configuration and direct order fulfillment.
"The acquisition of this organization supports our strategic growth goals, expanding our direct order fulfillment of complex systems," said Jure Sola, Sanmina's chairman and chief executive, in a statement. "The products shipped from this facility are complete telecommunication messaging systems that employ leading-edge software and hardware technologies that are integrated and tested to end-customer configurations prior to being shipped directly to those end customers.
Lucent had said earlier that it wanted to spin off the $8 billion Avaya unit because it was in a slow-growth market.
"This agreement helps us ensure that Avaya's enterprise customers and Lucent's service provider customers continue to receive the highest-quality messaging products," said Glenn Moyer, vice president of the Avaya operations, headquartered in Basking Ridge, N.J. "The Sanmina team is acquiring a group of experienced, skilled employees who understand advanced messaging technology for both service providers and enterprise customers. It made sense to keep that team together."