FNS will merge with Telavie AS, which is wholly owned by a Nordic private equity firm, Altor 2003 Fund. Under the terms of the definitive agreement, Flextronics will receive upfront cash payments of more than $550 million plus additional deferred and contingent payments and a 30% ownership stake in the merged network services company. Flextronics Semiconductor is being sold for cash to AMIS Holdings Inc., the parent company of AMI Semiconductor Inc.

"These transactions allow Flextronics to concentrate its efforts and resources on the core EMS business, which includes design, vertically integrated manufacturing services and logistics," said Flextronics chief executive officer Michael Marks.