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Celestica, Motorola ally
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December 6, 2000: 8:36 a.m. ET
Electronics manufacturing firm in $1B alliance with phone equipment maker
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NEW YORK (CNNfn) - Electronics manufacturing services firm Celestica Inc. announced a strategic alliance with Motorola Inc. Wednesday that includes a supply agreement worth more than $1 billion.
Celestica will also acquire Motorola (MOT: Research, Estimates) manufacturing assets in Dublin and Mt. Pleasant, Iowa for about $70 million. That deal is expected to close in the first quarter of 2001.
As part of the alliance, Toronto-based Celestica (CLS: Research, Estimates) will provide Motorola with electronics manufacturing services, cellular phones, pagers and other wireless telecom products. The company expects to receive more than $1 billion over three years for the services.
"Leveraging the expertise of a strategic partner and leader in the electronics manufacturing services industry, like Celestica, enables Motorola to better anticipate its customers' evolving needs and helps speed the time-to-market of Motorola's products around the world," said Christoper B. Galvin, Motorola chairman and CEO, in a statement.
Shares of Motorola rose 63 cents to $19 Tuesday, while Celestica jumped $3.44 to $59.62. 
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Motorola
Celestica
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