Rumours link Ingram to SDG buyout

Sources say potential deal to acquire SCH-owned distie would add much-needed enterprise credentials and increased EMEA presence

Ingram Micro could be set to bulk up its value proposition and widen its EMEA footprint with speculation suggesting the distribution giant is in talks concerning a possible acquisition of Specialist Distribution Group (SDG).

The channel rumour mill suggests the US giant might look to follow the lead of its big-four rivals Avnet, Arrow and Tech Data by making a hefty value-based acquisition in the UK. On its website, SDG, which is part of the Sir Peter Rigby-owned SCH group, claims to have 650 employees and a total turnover of $2.34bn (£1.5bn).

Its A-brand vendor partners include HP, IBM, Microsoft, Huawei, Novell, Symantec, VMware, Citrix and Lenovo. It also works with a host of specialised and niche players.

One industry source told ChannelWeb a deal for SDG should give Ingram a much-needed boost in the enterprise IT space, as well as strengthening its vendor relationships by increasing its footprint in EMEA's emerging markets.

"Ingram has made a strategic decision to pursue the value business. Enterprise solutions is a very competitive distribution segment, because of what Avnet, Arrow and Tech Data have done. Westcon is also moving into that space – all the major distributors are pursuing it," added the source.

"Another interesting thing is it would give them reach into the Middle East and North Africa. While that is a small business, vendors are looking [for their distributors to be] large, global players who have a presence in those markets."

SDG declined to comment, and Ingram was unavailable.