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Ingram Micro surges into mobility with finalisation of Brightpoint acquisition

Adds a leading global provider of device lifecycle services and solutions for the mobile industry to its arsenal

Global technology distribution giant, Ingram Micro, has taken a giant step forward into the mobility sector with the completion of its acquisition of Brightpoint for $US9 per share in cash.

The acquisition marks a major addition in Ingram's arsenal as it adds a leading global provider of device lifecycle services and solutions for the mobile industry.

In statement, Ingram Micro said the acquisition, initially announced on July 2, 2012, gives it broad customer reach and deep relationships with key vendors, network operators and mobile virtual network operators in the rapidly growing and strategically important mobile market.

Additionally, the combined company will now benefit from an expanded global geographic footprint and customer base.

It said the acquisition of BrightPoint supported Ingram Micro's long-term growth strategy to expand the company's business in high growth markets, while increasing its services and solutions capabilities.

BrightPoint brings more than 25,000 B2B customers and over 100,000 points of sale across the globe, along with operations in 27 countries and sales in more than 75 countries around the world.

The companies' combined businesses, as of the end of each company's 2011 fiscal year, had annual revenues of more than $US41 billion, with operations in more than 30 countries.

Ingram Micro said it expected to realise annual cost synergies and efficiencies in excess of $US55 million by 2014, and the acquisition is expected to be accretive to earnings per share by $US0.18 in 2013 and $0.35 cents in 2014, excluding one-time charges and integration costs.

"Today marks a significant milestone for Ingram Micro and BrightPoint, as well as for our collective associates, partners and customers," Ingram Micro president and CEO, Alain Monie, said.

"Independently, each company is a respected industry leader. Together, we are a stronger global leader, with the capability to serve our customers and vendor partners with the most comprehensive suite of mobile products, services and solutions in the industry.

"We believe this is an excellent time to significantly expand our mobile business and device lifecycle services, and together we will continue to meet the ever-growing technology and services requirements of our increasingly connected world."

According to Gartner analyst Tuong Huy Nguyen, in a September 2012 report entitled Ingram Micro Strengthens Mobile Distribution Expertise, "The traditional IT market has evolved to incorporate the growing demand for mobility. These markets have converged to include devices such as smartphones, tablets, ultramobiles and hybrid devices that have detachable keyboards... New-product categories present a number of challenges for devices and services solution providers.

"Traditional solution providers need to understand how to incorporate Wireless WAN solutions into their offerings. Wireless solution providers can benefit from lessons learned from supply chain and distribution models in the traditional IT market. Both segments can leverage these best practices to develop a strategy that effectively handles the evolving demands of consumers and enterprise users. One option is a partner with experience in both markets."

BrightPoint will initially be led by Ingram Micro senior executive vice-president and president Asia-Pacific, Shailendra Gupta, who successfully led the seven country integration of Ingram Micro's acquisition of Tech Pacific in 2004.

It was the company's largest acquisition prior to BrightPoint.

Gupta will also head the BrightPoint integration efforts and be assisted by a team consisting of individuals from each organisation, including members of BrightPoint's former senior management team who have taken similar senior leadership roles with Ingram Micro reporting to Gupta. They are: Mark Howell , President, Americas Mobile; Bruce Thomlinson , President, Asia-Pacific Mobile; and Anurag Gupta, President, EMEA Mobile .

Vincent Donargo , formerly BrightPoint chief financial officer, has assumed the role of executive vice president global integration and will also report to Gupta. Bob Laikin , former chairman and CEO of BrightPoint, will serve in a senior advisory role to Monie.


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