On April 16, Kohlberg Kravis Roberts & Co. (“KKR”) announced that an affiliate of KKR signed a definitive agreement to acquire the software development and solutions business of Flextronics (NASDAQ: FLEX) in a transaction valued at approximately $900 million. Flextronics will retain a 15% equity stake in the software business and continue as an important business partner and customer.
The software development and solutions business is headquartered in Palo Alto, California, with operations located predominantly in India under the banner of Flextronics Software Systems (“FSS”). In addition to operations in the US and India, it has a significant presence in Eastern Europe.
The acquisition is KKR’s first major investment in India. It is also the largest leveraged buyout and technology investment in India to date. Completion of the transaction, which is expected in the summer of 2006, is subject to regulatory approvals and customary closing conditions. After the closing, the business will operate under a new name, which has not yet been selected.
The Simpson Thacher team includes Andrew Chvatal and Tom Terbell (M&A), Jennifer Hobbs and Justin Lungstrum (Credit), Alvin Brown and Carl Berry (Executive Compensation and Employee Benefits), Steve Todrys (Tax), Lori Lesser and Kirstie Howard (IP), Krista McManus and Andrew Silverman (Real Estate), and Mike Isby (Environmental).