Ingram Micro snaps up BrightPoint for $840m

Ingram Micro snaps up BrightPoint for $840m

Technology distributor Ingram Micro has purchased BrightPoint for $840m in a deal it claims will create the 'leading global provider of device lifecycle services and solutions'.

Ingram Micro is paying $9 per share for the company, a 66% premium on its 29 June stock closing price. The deal includes the value of BrightPoint's debt, worth around $190m. In a statement, the business said: 'The combined company will have an expanded global geographic footprint and customer base in the rapidly growing and strategically important mobility market.'

Ingram Micro president and CEO Alain Monié said: 'BrightPoint is a well-run company with leading, high-value services and solutions coupled with excellent distribution channels in the global mobility market. BrightPoint’s offerings are highly complementary to both our logistics and distribution businesses, which will enable us to go to market with the leading portfolio of mobility device lifecycle services and solutions.

'Our expanded geographic footprint and strong financial position create growth opportunities for the combined company and give vendors, network operators and mobile virtual network operators (MVNOs), partners and customers one-stop access to one of the widest ranges of mobility and technology products, services and solutions.'

The deal is expected to be completed by the end of this year but is subject to shareholder approval at a special meeting during the third quarter of 2012. The acquisition will be funded by existing credit facilities and cash at Ingram Micro.

BrightPoint EMEA regional president Anurag Gupta is among the senior management who will join the new business once the acquisition is complete.

BrightPoint founder, chairman and CEO Robert J. Laikin said: 'The transaction with Ingram Micro will deliver significant value to our shareholders and will enable us to accelerate our global growth strategy. This powerful combination will also provide compelling opportunities for BrightPoint’s vendor partners, customers and employees to benefit from the financial strength, scale and broad geographic reach of the world’s largest technology distribution company. This is the right time for this transaction.'

Editor: Graeme Neill

Written by Mobile Today
Mobile Today


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