Expanding its manufacturing presence in Central Europe, Celestica Inc. said today it will acquire a Czech Republic-based technology company that specializes in serving the communications, automotive and defense industries.
Celestica, a Toronto-based EMS company, has signed an agreement to purchase SAGEM CR s.r.o, in Kladno, Czech Republic. SAGEM is a subsidiary of French electronics company SAGEM SA. Financial terms of the transaction were not disclosed, however Celestica has a three-year supply contract valued at $500 million for the manufacture, repair and supply chain needs of SAGEM's mobile handsets and other communications products. The deal, which includes Celestica hiring 850 SAGEM workers, is expected to close in June.
Celestica recently raised $705 million by selling 12 million subordinated voting shares for general corporate and acquisition purposes. The company has operated a plant in Rajecko, Czech Republic since 1999 that offers printed circuit board assembly, full system assembly and repair services to OEMs in the information technology, networking and memory industries.