Moves into wireless device distribution market
Ingram Micro has splashed out $840 million (£535.7 million) for BrightPoint, a specialist wireless device and services distributer.
Under the acquisition, which will take Ingram Micro into the wireless device market, the company will scoop up all the the outstanding shares of BrightPoint common stock for $9.00 per share in cash, a 66 percent premium to BrightPoint’s closing stock price on June 29, 2012, and a 35 percent premium to the 90-day average trading price.
The purchase is claimed to be funded by Ingram Micro’s credit facilities and cash balances, and is aimed to push the company into the wireless space through BrightPoint’s customer base and existing relationships with vendors, network operators and mobile virtual network operators.
Ingram Micro president and chief executive officer Alain Monie, 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.
She added that expanding Ingram Micro’s presence in the mobility market had been a key focus of the company and the acquisition of BrightPoint accomplished this.
“The transaction clearly supports our longer-term growth and profitability targets and meets our return-on-investment criteria for creating shareholder value,” she said.
BrightPoint founder, chairman and chief executive officer 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.
Ingram Micro has also kept some of BrightPoint’s senior management on side. This includes existing Regional Presidents, Mark Howell (Americas), Bruce Thomlinson (APAC), Anurag Gupta (EMEA), and Vincent Donargo, BrightPoint’s Chief Financial Officer.
In addition, Robert Laikin will serve in a senior advisory role to Alain Monie.