Telenor Technology a Strategic Acquisition
In the scheme of things this is rather a small
acquisition in regards to revenue addition (about
$10 mil vs total rev of almost $5 billion). This
does mark Jabil's first beachhead outside of
the US, however, regarding repair services.
Telenor brings with it a 42,000 foot repair
facility and about 140 employees in Ireland
For comparison, when Jabil bought EFTC, EFTC
had about 700 employees and had total revenues
of about $10 million last quarter.
Basically, from what I can see, the next phase
in outsourcing by OEM's will be in the area of
warranty repair and maintenance...and companies
like Jabil, Flextronics, etc. are just getting
started in this area. The market for this
type of work, right here and now, is estimated
to be around $100 billion and growing about
6%-7% per year. The ECM's should see much faster
growth than that. As you can see, given from where
Jabil is starting from, there is tremendous
room for growth in this next phase.
Good luck to all.
Peter. |
