SAN JOSE -- Flex has entered into an agreement with Multi-Fineline Electronix (M-Flex), a wholly-owned subsidiary of Suzhou Dongshan Precision Manufacturing, to divest Multek's China-based operations.

According to the terms of the agreement, MFlex will acquire all equity interests in the non-US subsidiaries of Flex that operate the China-based business of Multek, for approximately $273 million net of cash. Multek will continue to operate with its current name and location in Zhuhai, China. The US-based Multek operation will remain a wholly owned Flex subsidiary.

The acquisition of Multek gives M-Flex, known for its flex circuit offerings, a foothold in the high-layer-count rigid board market. Flex will hang on to Multek's flex circuit board manufacturing operations in Minnesota and the Philippines, and its quickturn plant in California.

 In a press release announcing the move, Franck Lize, president of Multek, said, "We are pleased to embark on the next step in Multek's evolution as we bring our talent and technology to DSBJ's industry-leading businesses."

Yonggang Yuan, chairman of DSBJ said, "The acquisition of Multek is another step forward toward our ultimate goal of advancing DSBJ's technological offerings and globalization of our company. We are excited about our recent achievements after the acquisition of M-Flex, and look forward to welcoming Multek to DSBJ's family of companies. This strategic acquisition is expected to enhance our product offerings to our customers and is yet another step in solidifying DSBJ's position as a global technology company."

The transaction is expected to close in the third quarter and is subject to customary closing conditions, including regulatory approvals.

Multek is a top 30 printed circuit board fabricator, with sales of about $600 million in 2016, according to the NTI-100. M-Flex ranked just behind, at 31, with sales of $522 million. M-Flex was acquired by DBSJ in 2016.  If approved, the acquisition will boost M-Flex into the world's top 10.