Ingram Micro has made good on plans to bulk up through acquiring other distribution businesses after forking out $840m (£536m) to buy wireless device solutions and services specialist BrightPoint.
Last year BrightPoint made total sales of $5.2bn and handled over 110 million mobile devices. It provides a wide-ranging portfolio of device lifecycle management services including distribution channel management, inventory management, reverse logistics and repair, software loading and product customisation, among other things.
Acquisitions key to Monié strategy
The acquisition of BrightPoint is the first buy Ingram has made under its new CEO, who has previously said he would look to acquire midsize business to build the business out "pillar-by-pillar".
Besides being able to lever BrightPoint’s extensive worldwide reach into key mobility vendors, network operators and MVNOs, Ingram will also be taking advantage of a 25,000-strong customer base, served through over 100,000 points of sale around the world. EMEA boss Anurag Gupta will remain on board.
“This powerful combination will provide compelling opportunities for [our] vendor partners, customers and employees to benefit from the financial strength, scale and broad geographic reach of the world’s largest technology distribution company,” said BrightPoint founder, chairman and CEO Robert Laikin, who is to transition across in a senior advisory role.
Alain Monié, Ingram CEO, said the firm viewed the acquisition as “highly complementary” to both its logistics and distribution businesses.
“Expanding our presence in the mobility market has been a focus of Ingram Micro and the acquisition of BrightPoint accomplishes this to an extent that would have been challenging to achieve on our own,” he said.
The acquisition was funded using Ingram’s existing credit facilities and cash balances, alongside a commitment for a $300m debt facility. The broadliner said it expected to realise annual cost synergies and efficiencies in excess of $55m by 2014.