$3 Billion Sale of Lifecycle Services Business Frees Up Ingram Micro to Focus on Expansion$3 Billion Sale of Lifecycle Services Business Frees Up Ingram Micro to Focus on Expansion
The sale provides more room to focus on the expansion of core technology distribution and cloud services capabilities.
December 20, 2021
The sale of Ingram Micro’s Commerce & Lifecycle Services (CLS) activities enables the distributor to focus on its core business.
That’s according to Paul Bay, EVP and president global technology solutions, Ingram Micro.
On Dec. 8, Ingram Micro announced the sale of CLS, which covers logistics outsourcing for e-commerce and order fulfilment across sales channels. The buyer was France’s CMA CGM, one of the world’s largest container shipping lines. The deal is valued at $3 billion.
Bay explained the decision behind the sale.
Ingram Micro’s Paul Bay
“This move … gives us more room to focus on the growth and expansion of our core technology distribution and cloud services capabilities,” he said. “With the support of Platinum Equity, we will continue to invest in growing these businesses organically and through prospective acquisitions.”
Ingram Micro was bought this year by U.S. buyout firm Platinum Equity in a $7.2 billion deal.
Priorities for 2022
Bay stressed that Ingram Micro’s reverse logistics and ITAD business stays with the company and remains available for customers.
“We’re enabling the Connected Economy and focusing our efforts on bringing more and creating more value for our partners and providers. Our team is here to support the vision and future growth plans of our partners by being their indispensable business partner. We’re here to give them what they need to run better, grow faster and do more for their customers.”
Bay said 2022 will see the company commit to creating higher value for channel partners around their businesses. This includes investing in resources to help partners to “transform their business practices and expand their technical practice capabilities” with cloud and advanced solutions.
“This includes our Cloud Marketplace, Centers of Excellence and growing Managed and Professional Services offerings,” he said.
“Across the IT channel, roles are evolving, and lines are blurring between who does what in driving the outcome. Distribution isn’t simply a delivery system. It’s a differentiator that brings partners and providers greater scale, success and business value.”
Deal to Close in 1H 2022
CMA CGM said it expects the transaction to close in the first half of 2022. The purchase means CMA CGM’s CEVA Logistics unit becomes the world’s fourth-largest global contract logistics provider.
The shipping group said the activities to be absorbed from Ingram Micro were focused on the U.S. and European markets. Segments include technology, fashion and retail.
With $49 billion in revenue for 2020, Ingram Micro is the world’s largest distributor. It has 35,000 employees and operations in 60 countries, serving 170,000 customers and partners with 1,600 vendors.
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