Flextronics Acquires Redbox Manufacturers Solectron11 Jun, 2007 By: Chris Tribbey
Singapore-based Flextronics International Ltd. has announced it will acquire Sacramento electronics manufacturing services provider Solectron Corp., the company that manufactures the kiosks for DVD rental operator Redbox Automated Retail LLC.
The deal is worth a reported $3.6 billion, according to a Solectron press release.“Solectron is an extremely important strategic addition to Flextronics and this combination transforms the landscape of our industry,” Flextronics CEO Mike McNamara said in the release.
McDonald's-owned Redbox, which launched with a dozen of its rental kiosks in 2003, expects to have more than 4,000 of the kiosks installed at grocery stores, McDonald's restaurants and other locations by the end of June. The company also offers an online service.
Each of the kiosks holds more than 500 DVDs of roughly 70 new releases, and consumers are charged a rental fee of $1 per day. After 25 days, the fee ceases and the renter owns the DVD.