Consolidation of the global distribution skyline has continued with news that Ingram Micro and wireless and mobility specialist BrightPoint are joining forces.
Ingram is shelling out $840m (£535m) to acquire NASDAQ-listed BrightPoint, which employs 4,000 staff in 24 countries and turned over $5.2bn in its last financial year.
IT broadliner Ingram already works in the mobility space – recently broadening its relationship with Research in Motion – but felt it needed to acquire to build the necessary economies of scale.
Founded in 1989, Indianapolis-based BrightPoint provides device life cycle services to the wireless industry, last year handling more than 112 million wireless devices globally. The services it offers include distribution channel management, procurement, inventory management, reverse logistics, software loading and product customisation.
Alain Monie, chief executive of Ingram Micro, said: "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.
"Additionally, the complementary nature of our businesses provides a unique opportunity to drive synergies and efficiencies across the combined companies, which is expected to result in meaningful accretion to earnings per share beginning in 2013."
Ingram has agreed to stump up $9 a share for BrightPoint, representing a 66 per cent premium on its closing share price on 29 June. The $840m price includes $190m of BrightPoint's debt.
Four of BrightPoint's senior management team, including EMEA regional president Anurag Gupta, have committed to senior roles in the new organisation.
Robert Laikin, chief executive of BrightPoint, said: "This is the right time for this transaction. I believe strongly that Ingram Micro is the best partner for our business and employees going forward and I am excited at the prospect of BrightPoint becoming part of a Fortune 100 company."
Ingram Micro chief operating officer Bill Humes said: "We admire the in-depth industry expertise and enthusiasm of the BrightPoint team and their excellent long-term relationships with customers, vendor partners, network operators and mobile virtual network operators.
"The mobility industry is forecasted to grow faster than other technology sectors, driven in part by exponential growth in the smartphone and tablet segments due to the ever-increasing demand for access to data anytime."
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