The cooperation will continue - Flextronics announced that they will continue to produce mobile phones for Motorola, while Motorola Mobility, with outsourcing production, receives the necessary financial support and more resources to focus on other parts of the supply chain. Flextronics will take over Motorola's manufacturing facilities in Chinese, Tianjin, and Brazilian Jaguariuna. In addition it looks like all existing employees will keep their positions, at least 7000 in China.
The two companies have reached a definitive agreement on the change of ownership with the entire transaction to be completed in the first half of next year. This will be after all the legal procedures and approval from regulatory agencies. Flextronics and Motorola Mobility did not officially reveal the financial side of the transaction, but the unofficial story says that the Flextronics factory will cash out a total of $75 million.
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