https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Agents
  • Cloud Service Providers
  • Channel Partners Events
 Channel Futures

Mergers and Acquisitions


Ingram Micro Sold for $6 Billion to Tianjin Tianhai

  • Written by Michael Cusanelli
  • February 18, 2016
Chinese shipping container transportation company Tianjin Tianhai Investment has purchased Ingram Micro (IM) for $6 billion, or $38.90 per share, in a surprise deal announced on Wednesday.

Chinese shipping container transportation company Tianjin Tianhai Investment has purchased Ingram Micro (IM) for $6 billion, or $38.90 per share, in a surprise deal announced on Wednesday.

Ingram will operate as a subsidiary of Tianjin Tianhai following the completion of the deal, but the distributor will remain headquartered in Irvine, CA, according to the press release. The company’s executive leadership team will also remain in place, including Alain Monié, the company’s current CEO.

Wall Street responded positively to the acquisition, with Ingram Micro reporting that its shares rose 24 percent following the announcement. The purchase price of a single share also increased by about 31 percent, up from $29.65 on Wednesday, according to the company.

"While we’ve taken tremendous steps forward, we are far from finished in the Ingram Micro success story," said Monié, in a letter to Ingram's Global Associates. "In fact, the rest of the management team and I see more opportunity ahead than ever before. This is a key reason why we are excited about joining HNA Group as it helps us in the pursuit of our strategy and goals, which do not change, except we can get there faster."

Ingram’s acquisition is the latest in a series of large-scale acquisitions by Chinese companies meant to buoy slowing growth in the region, according to the Wall Street Journal.

HNA Group, a Hainan-based enterprise group with ties to aviation, tourism and logistics in China, is the largest stockholder in Tianjin Tianhai, according to Street Insider. Naturally, Ingram will become a part of HNA Group following the close of the deal, which is expected to take place sometime in the second half of 2016. Both Ingram Micro’s and Tianjin Tianhai’s board of directors have already approved of the deal.

Tianjin Tianhai Investment Company was formerly known as Tianjin Marine Shipping Company, and has previously been involved mostly in marine transportation services, according to Reuters.

San Francisco-based M&A Advisory company MartinWolf said the deal is bound to cause major disruption within the channel, and will serve as an opportunity for partners to renegotiate their agreements with the distributor for better purchasing and credit deals.

Tim Curran, CEO of the Global Technology Distribution Council, said the acquisition is significant, largely because of Ingram's widespread global market reach.

"Ingram Micro is a great company with an especially unique global profile, operating more than 120 distribution centers worldwide and serving customers in approximately 160 countries," said Curran, in an email. "We are a global industry association and view this development as yet another example of how distributors continue to grow, diversify and transform. The development reflects the value and importance of distribution in the overall technology marketplace."

It is surprising that Ingram Micro, which reported worldwide Q3 2015 sales of $10.5 billion and projected sales of up to 12.6 billion in Q4, would sell for only $6 billion, despite the fact that it is typically considered one of the largest IT distributors in the world. Compare the sale to the recent purchase of EMC by Dell for a whopping $67 billion, and the discrepancy becomes a little clearer.

“Whether or not this deal closes, the move is indicative of ongoing upheaval in the IT distribution space caused by technology’s shift to the cloud and the channel’s continuing march toward a services model,” said Carolyn April, CompTIA’s senior director of industry analysis, in an email.

The VAR Guy has reached out to Ingram Micro for additional comment on the acquisition, and will update this story once more information is disclosed.

Update: An Ingram Micro spokesperson responded to The VAR Guy's request for more information. Although company executives have so far been unavailable for comment, Ingram did send out several documents to shareholders with more information on the deal.

Here are some fast facts from Ingram Micro's Q&A document:

  • Ingram said the acquisition is expected to help boost its reach into China and other emerging markets, thus providing new sales opportunities for vendor and customer partners. "As a part of HNA Group, Ingram Micro expects to have the ability to accelerate our investments, both organically and through M&A, to enhance and add to our capabilities in high value IT solutions, mobility lifecycle services, commerce and fulfillment solutions and cloud, while also further extending our geographic reach," the company said.
  • Few to no layoffs are planned following the acquisition. Additionally, none of Ingram's current offices, facilities or warehouses will be impacted by the deal. No effect on daily operations or dealings with partners are expected, either.
  • Once the deal is complete, Ingram Micro will no longer be publicly traded on the NYSE stock exchange.
Tags: MSPs Mergers and Acquisitions

Most Recent


  • Statistics
    Post-TBI Acquisition, Partners Weigh the Future of AppDirect, TSDs
    "I work with the assumption that no company will be what they are today three years from now," a partner said.
  • Cloud raining money
    Cox Bolsters AWS, Azure Chops in Logicworks Buy
    Cox looks to combine Logicworks with RapidScale, which it acquired in 2018.
  • Cloud Merger
    Bam Boom! Pax8 Buys Cloud Company to Enable MSPs with Microsoft Dynamics
    The purchase will help partners automate clients’ business processes. Rob Rae will play a role, too.
  • ITX Channel Futures Video Freeze
    What’s in Store for Channel M&A in 2023: An Interview with ITX President Tim Mueller
    The new partnership between ITX and Channel Futures is poised to benefit partners of all kinds.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Woman with questions
    Should We Just Call Master Agents Distributors?
  • Drive revenue
    Proofpoint Protect: Rising Vendor, Partner Revenues Amid COVID-19
  • Acquisition
    Private Equity Firms Snapping Up ExtraHop in $900 Million Acquisition
  • Woman lifts lid on box
    Nuvias CEO Lifts Lid on Cloud Distribution Acquisition

Upcoming Events

View all

Channel Partners Conference & Expo

May 1, 2023 - May 4, 2023

Channel Partners Europe

June 13, 2023 - June 14, 2023

Channel Futures Leadership Summit

October 30, 2023 - November 2, 2023

Galleries

View all

Post-TBI Acquisition, Partners Weigh the Future of AppDirect, TSDs

February 3, 2023

Juniper Networks Shows ‘Swagger’ with Ambitious Growth Strategy

February 3, 2023

Zero Trust World 2023: ThreatLocker Unleashes Ops Threat-Detection Tool

February 2, 2023

Industry Perspectives

View all

How to Break Through the Growth Ceiling

February 1, 2023

5 Things to Look for in a UC Partner

January 31, 2023

The Benefits of Hiring an Investment Bank

January 30, 2023

Webinars

View all

Next-Generation MSP Platform: The Building Blocks for Your Business

February 15, 2023

How To Boost Your Business With White-Label UCaaS

February 28, 2023

Security Secrets of the MSP 501: How to Be a Cyber Leader in 2023

December 15, 2022
  • 1

White Papers

View all

6 UCaaS Reseller Challenges and How Real World Businesses Solved Them

February 1, 2023

Frost Radar: North American UCaaS Market, 2022

February 1, 2023

The Complete Guide to White-Label UCaaS for Reseller Success

February 1, 2023

Channel Futures TV

View all

Coffee with Craig and James Episode 117: Cato Networks, Video Killed the Podcast Stars

Retired Astronaut Capt. Scott Kelly Previews His CP Expo Keynote

December 21, 2022

Fusion Connect Eyes Future with Intrado UC, Managed Network Customers

September 23, 2022

RingCentral Focused on Hybrid Work, Microsoft Teams, Other Integrations

September 23, 2022

Twitter

ChannelFutures

Partners and suppliers weighed in on the AppDirect-TBI acquisition and its implications for the channel.… twitter.com/i/web/status/1…

February 3, 2023
ChannelFutures

Read about @coxbusiness' acquisition of @Logicworks. dlvr.it/Shty4t https://t.co/3MaKai6SVr

February 3, 2023
ChannelFutures

Where in the world are the top MSPs?? Take a look at the infographic breakdown of 2022 #MSP501 winners by region >>… twitter.com/i/web/status/1…

February 3, 2023
ChannelFutures

.@SovosCompliance offers tips for how and when to revamp #partnerplans. dlvr.it/ShtDgv https://t.co/vPzajXnjee

February 3, 2023
ChannelFutures

Day 2 of #ZTW: @ThreatLocker unveils new Ops threat detection tool. dlvr.it/Shs93Y https://t.co/dAnj6IUiF2

February 3, 2023
ChannelFutures

.@broadvoice appoints a channel vet as new program leader. Before joining the company, he had risen through the ran… twitter.com/i/web/status/1…

February 2, 2023
ChannelFutures

More activity over at @Pax8 (which just hired @RobTRae): the #cloud marketplace firm has purchased @BamBoomCloud.… twitter.com/i/web/status/1…

February 2, 2023
ChannelFutures

.@SamsungMobile launches #GalaxyS23 phones, new #GalaxyBook3Ultra at Samsung Unpacked. dlvr.it/ShrW8G https://t.co/DloltwdMsE

February 2, 2023

MSP 501

The industry's largest and most comprehensive partner awards program.

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Galleries

Educational slide shows and images from live events.

Media Kit And Advertising

Want to reach our audience? Access our media kit.

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Events
  • Telecoms.com
  • MSP 501
  • Black Hat
  • IoT World Today
  • Omdia

WORKING WITH US

  • Contact
  • About Us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X