Flextronics Sells Stake In Former Unit For $255M

NEW YORK (AP) — Flextronics International Ltd. has sold its remaining stake in its former software development business to the private equity firm Kohlberg Kravis Roberts & Co. and Canada's CPP Investment Board for $255 million.

The Singapore-based company, which makes electronic gadgets such as cell phones and Microsoft Corp.'s Xbox, said it is selling the stake to raise cash and improve financial flexibility. It has been struggling through the recession as consumers pull back on spending.

Flextronics sold most of its stake in the business to KKR in 2006. The New York private equity firm paid roughly $900 million for the unit, now a privately held company called Aricent, and Flextronics kept a 15 percent stake.

In a statement, KKR India CEO Sanjay Nayar said, "We are pleased to invest further in a company that has just reported its highest annual revenue in its history and continues to grow its customer base."

KKR said the CPP Investment Board of Toronto is also a part of the investment, though it did not disclose how much cash the group put up.

KKR says its total stake in the company is now 79 percent.