Jabil Circuit, Inc. (NYSE: JBL) today announced that it has entered into an agreement with iQor Holdings, Inc. for the sale of its aftermarket services business for $725 million. In 1999, Jabil entered the electronics warranty repair business through a $30 million acquisition (later named Jabil Aftermarket Services, or AMS). “Our AMS business has been a wonderful asset to Jabil over the past 14 years, as it grew through internal growth and acquisitions to represent $1.1 billion in revenue for Jabil in fiscal 2013. Today, Jabil's AMS business is concentrated in depot repair for consumer electronics, which is not aligned with our strategy to focus on diversified manufacturing solutions,” said Mark T. Mondello, Jabil’s C.E.O. “This divesture should provide us the financial flexibility to potentially add more engineering intensive capabilities, which should allow us to expand and diversify our core manufacturing business. We expect to continue to pursue opportunities similar to our recent Nypro acquisition,” added Mondello. Jabil has agreed to an exclusive aftermarket service agreement with iQor designed to facilitate continuity of service for existing Jabil customers. “We sincerely appreciate our AMS team and their commitment to customer care and consistency in execution. We are confident that the strategic fit with iQor will make for a smooth transition for our Jabil employees, and the vast majority of our AMS customers will benefit significantly from being a part of iQor,” said Mondello. Of the $725 million purchase price, $675 million is cash and $50 million is senior nonconvertible preferred stock of iQor that accretes dividends at an annual rate of 8 percent and is redeemable in nine years or upon a change in control. The final purchase price is subject to certain customary adjustments. The transaction is subject to certain closing conditions, including regulatory approvals and receipt of third party consents, and is anticipated to close in Jabil’s third fiscal quarter of 2014.