Ingram joins forces with Softbank

Alliance Deal to supply PC products worldwide set to generate $30 billion worth of revenues for distributors.

Ingram Micro and Japanese software specialist Softbank have struck anlion worth of revenues for distributors. alliance to distribute PC products worldwide.

The US distribution giant will be Softbank's exclusive partner outside Japan, while Softbank will handle all of Ingram's Japanese sales. The share swap deal will mean that both companies will take a $50 million investment in each other. Additional terms of the deal were not disclosed.

Jerre Stead, chairman and chief executive of Ingram, described the alliance as 'the first global partnership in technical distribution'. He estimated the deal was expected to generate more than $30 billion worth of revenues within a year.

Masayoshi Son, president and chief executive of Softbank, said: 'Our respective investments are important signals conveying our deep, mutual respect and commitment to long-term market success together.'

The deal was struck to provide global account services to Vars, including a number of joint purchasing programmes. Japan is seen as the second largest IT market in the world.

One observer said it would have been unwise for Ingram to have set up an expensive Japanese subsidiary, when the the Far East market is experiencing a massive downturn in financial fortunes.

He said: 'On the whole, this looks like a good deal for both companies as they are not stepping each other's toes. Softbank may be big in Japan, but it has failed to achieve much in Europe.'

Both companies admitted they were looking at developing channel assembly capabilities in Japan in the near future but refused to give any further details.