SANTA ANA, Calif., Aug. 13, 2012 /PRNewswire/ -- Ingram
Micro Inc. (NYSE: IM), the world's largest
technology distributor and supply-chain services provider,
today announced it is broadening its geographic reach
into the Middle East and
North Africa with the signing of a
definitive agreement to acquire certain IT businesses of
Dubai-based Aptec Holdings
Ltd. Aptec is a
leading value-added distributor in the Middle East, Turkey and North
Africa, with products and solutions covering data
center, storage, security, networking,
and software categories, including technical
services.
The acquisition is expected to contribute more than
$250 million in revenue to Ingram
Micro on an annual basis and is expected to close before the
end of the third quarter of 2012, subject to the
satisfaction of certain closing
conditions. Dr.
Ali Baghdadi, founder
and chief executive officer of Aptec, will lead the acquired
operations reporting to Shailendra
Gupta, senior executive vice president and
president, Ingram Micro Asia-Pacific.
Further details of the transaction
were not disclosed.
"The acquisition of Aptec fits well with our
strategic objectives to continue to build our higher margin
specialty businesses while broadening our geographic reach to
capitalize on higher growth markets," said Alain Monié,
president and chief executive officer of Ingram Micro
Inc. "The Middle
East and Africa are robust
and growing markets with total IT spending projected to reach
$80 billion by
20151. Aptec has been
highly effective in growing their business and enhancing
profitability in these emerging markets and we believe this
combination will further accelerate these ongoing
objectives. Aptec has a
long-tenured, accomplished leadership team and we look forward to
joining forces with them."
Founded in 1980, Aptec currently operates in 6
countries and provides products and services to key Middle
East and North Africa countries including the
United Arab Emirates,
Kuwait, Oman, Egypt,
Lebanon, Pakistan and Turkey. The
company's regional geographical coverage and extensive
customer base are staffed by approximately 350 associates
serving over 3,800 active resellers. Aptec's
marketing programs, advanced logistics services, technical support,
consultancy, high-level technical consulting and outsourcing
services, financial services and product delivery and distribution
capabilities have made the company one of the most
prominent value-added distributors in the region.
"We are excited to join with Ingram Micro,"
said Baghdadi. "For more
than 30 years Aptec has focused on building the
company through innovation, value-added service and an unwavering
commitment to our customers and vendor partners. The combined
strength of Aptec in the Middle
East and North Africa and
the global leadership and strategic vendor and customer
relationships of Ingram Micro provide an excellent opportunity
for expanded reach into new services, products and geographies and
we expect the union to offer even more value to our combined
community."
1Source: IDC
Blackbook, Q2 2012.
Cautionary Statement for the Purpose of the Safe
Harbor Provisions of the Private Securities Litigation Reform Act
of 1995
The matters in this press release that are
forward-looking statements are based on current management
expectations. Certain risks may cause such expectations to not be
achieved and, in turn, may have a material adverse effect on Ingram
Micro's business, financial condition and results of operations.
Ingram Micro disclaims any duty to update any forward-looking
statements. Important risk factors that could cause actual results
to differ materially from those discussed in the forward-looking
statements include, without limitation: (1) we are dependent on a
variety of information systems, which, if not properly functioning,
or unavailable, could adversely disrupt our business and harm our
reputation and earnings; (2) changes in macro-economic conditions
may negatively impact a number of risk factors which, individually
or in the aggregate, could adversely affect our results of
operations, financial condition and cash flows; (3) we continually
experience intense competition across all markets for our products
and services; (4) we operate a global business that exposes us to
risks associated with conducting business in multiple
jurisdictions; (5) our failure to adequately adapt to IT industry
changes could negatively impact our future operating results; (6)
terminations of a supply or services agreement or a significant
change in supplier terms or conditions of sale could negatively
affect our operating margins, revenue or the level of capital
required to fund our operations; (7) we have made and expect to
continue to make investments in new business strategies and
initiatives, including acquisitions, which could disrupt our
business and have an adverse effect on our operating results; (8)
substantial defaults by our customers or the loss of significant
customers could have a negative impact on our business, results of
operations, financial condition or liquidity; (9) changes in, or
interpretations of, tax rules and regulations, changes in mix of
our business amongst different tax jurisdictions, and deterioration
of the performance of our business may adversely affect our
effective income tax rates or operating margins and we may be
required to pay additional taxes and/or tax assessments, as well as
record valuation allowances relating to our deferred tax assets;
(10) changes in our credit rating or other market factors such as
adverse capital and credit market conditions or reductions in cash
flow from operations may affect our ability to meet liquidity
needs, reduce access to capital, and/or increase our costs of
borrowing; (11) failure to retain and recruit key personnel would
harm our ability to meet key objectives; (12) we cannot predict
with certainty what loss we might incur as a result of litigation
matters and contingencies that we may be involved with from time to
time; (13) we may incur material litigation, regulatory or
operational costs or expenses, and may be frustrated in our
marketing efforts, as a result of new environmental regulations or
private intellectual property enforcement disputes; (14) we face a
variety of risks in our reliance on third-party service companies,
including shipping companies for the delivery of our products and
outsourcing arrangements; (15) changes in accounting rules could
adversely affect our future operating results; and (16) our
quarterly results have fluctuated
significantly.
We also face a variety of risks associated with our
recently announced signing of definitive
agreements to acquire Aptec and BrightPoint Inc.,
including: our ability to timely complete the
transactions, if at all; our ability to complete the transactions
considering the various closing conditions, including those
conditions related to regulatory approvals and BrightPoint
shareholder approval; the financial performance of Aptec,
BrightPoint and Ingram Micro through the completion of the
respective transactions; each of Aptec and BrightPoint's businesses
may not perform as expected due to transaction-related
uncertainties or other factors; the ability of
each of Aptec, BrightPoint and Ingram Micro to retain relationships
with customers, vendors and carriers;
management's ability to execute its plans, strategies and
objectives for future operations, including the execution of
integration plans; growth of the mobility industry;
uncertainties relating to litigation,
including pending and future BrightPoint shareholder lawsuits
related to the proposed or completed transaction; and other
unknown, underestimated and/or undisclosed commitments or
liabilities;
our ability to maintain access to adequate levels of
capital at reasonable rates ; and our
ability to achieve the expected benefits and manage the expected
costs of the transactions.
Ingram Micro has instituted in the past and continues
to institute changes to its strategies, operations and processes to
address these risk factors and to mitigate their impact on Ingram
Micro's results of operations and financial condition. However, no
assurances can be given that Ingram Micro will be successful in
these efforts. For a further discussion of significant factors to
consider in connection with forward-looking statements concerning
Ingram Micro, reference is made to Item 1A Risk Factors of Ingram
Micro's Annual Report on Form 10-K for the fiscal year ended
Dec. 31, 2011 and Quarterly Report on
Form 10-Q for the quarterly period ended June 30, 2012; other risks or uncertainties may
be detailed from time to time in Ingram Micro's future SEC
filings.
About Ingram Micro Inc.
As a vital link in the technology value chain, Ingram Micro
creates sales and profitability opportunities for vendors and
resellers through unique marketing programs, outsourced logistics,
technical and financial support, managed and cloud-based services,
and product aggregation and distribution. The company is the only
global broad-based IT distributor, serving 145 countries on six
continents with the world's most comprehensive portfolio of IT
products and services. Visit www.ingrammicro.com.
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SOURCE Ingram Micro Inc.