Ingram Micro Buys Mobility Lifecycle Company BrightPoint
Distribution behemoth Ingram Micro (NYSE: IM) has announced its intention to acquire wireless device lifecycle services management provider BrightPoint, giving Ingram Micro added capabilities to its mobility portfolio.
Under the terms of the deal, Ingram Micro is paying $9 per share for BrightPoint, totaling about $840 million. BrightPoint provides end-to-end supply chain and customization solutions to manufacturers, retailers and carriers in the wireless device industry, and the addition of its services will give Ingram Micro a leg-up in the mobility space.
"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," said Ingram Micro president and CEO Alain Monie in a statement. "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, partners and customers one-stop access to one of the widest ranges of mobility and technology products, services and solutions."
The acquisition makes sense from a logistics standpoint as mobility increasingly drives networking and other corporate spending and technologies such as mobile device management become integral to corporate strategies. Giving Ingram Micro a literal cradle-to-grave mobility solution certainly makes it a more attractive partner to channel partners who have or are looking to enter the mobility fray in a big way. And BrightPoint's business certainly has all the bases covered — from forecasting and managing supply-chain lifecycles to configuring and preparing mobile devices and "retiring" and recycling out-of-service smartphones.
"The mobility industry is forecasted to grow faster than other technology sectors, driven in-part by exponential growth in the smartphone and tablet segments due to the ever-increasing demand for access to data anytime, anywhere and on any device," said Bill Humes, Ingram Micro CO/CFO. "Additionally, the convergence of telecommunications, computing and media is driving strong demand and should lead to cross-sell and upsell opportunities, as our respective customer bases continue to converge. Together we expect to capitalize on this growth and generate benefits for our combined vendors, partners, customers, associates and shareholders greater than either company could on its own."
BrightPoint senior executives including existing regional presidents, Mark Howell (Americas), Bruce Thomlinson (APAC) and Anurag Gupta (EMEA) have agreed to stay on with the company, as has Vincent Donargo, BrightPoint's chief financial officer. Founder, chairman and CEO Robert Laikin will serve in a senior advisory role to Monie.