14 DAY TRIAL // Arima Computer announced that it will soon sell its computer manufacturing business and all related assets to the Flextronics company that will become one of the largest and most important contract manufacturers in the world. Not only the desktop assembly lines will be sold but the notebook ones will share the same fate as well because Arima is withdrawing from the computer manufacturing business and it now looks at other projects.
The transaction between the two companies includes all operation related facilities, machineries, products, technology and so on as well as all shares of the current computer business division. This transaction is evaluated at around $59.5 million over the estimated value of those respective goods which in turn were evaluated at around $132 million.
According to the news site xbitlabs this move will prompt Arima to seek other business opportunities, while the Flextronics company that is right now taking over yet another contract computer manufacturer, will increase its operations, client portfolio and engineering pool.
This decision to sell its entire desktop, notebook and server manufacturing business comes as Arima registered only very thin margins during the last period and this transaction is also following the industry trend of merging smaller companies into a single greater one as the competition is fierce and all smaller players are getting little profits while fully feeling all the component shortages or price increases.
The definitive agreement between the two companies is expected to be signed in the next 45 days and the buying party will offer similar positions to all former Arima workers as well as similar employee benefit and base compensation. After the 45 days period Arima is expected to call for a shareholders meeting in order to seek approval of the transaction and if this acquisition plan is successful the deal will be closed at a later date. As Flextronics is going to become the sole owner of those computer manufacturing facilities, its relations with clients and suppliers are not expected to change too much apart from the normally to be expected course adjustments.