Skip to Content
Stock Analyst Update

Solectron Bucks the Nasdaq

Company announces major outsourcing deal with Nortel.

 Solectron (SLR) was one the few bright spots in the technology sector Tuesday.

When Solectron announced earnings a few weeks ago, it indicated that a major deal was in the works. The company delivered on that promise with the announcement that it is acquiring a considerable chunk of Nortel Networks' (NT) manufacturing facilities. The deal falls right in line with the industry's largest electronics-manufacturing-service's core business. Solectron will purchase the Nortel assets for $900 million and in exchange will be on the receiving end of about $10 billion in sales from the telecommunication-equipment maker over the next four years.

Jeremy Lopez does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.