SANTA ANA, Calif., Oct. 15, 2012 /PRNewswire/ -- Ingram Micro Inc.
(NYSE: IM) announced today that it has completed its acquisition of
Brightpoint, Inc. (Nasdaq: CELL) (BrightPoint) for $9.00 per share in cash. The addition
complements Ingram Micro's position as the world's largest
technology distributor by creating a leading global provider of
device lifecycle services and solutions for the mobile industry.
The acquisition, initially announced on July
2, 2012, gives Ingram Micro tremendous customer reach and
deep relationships with key vendors, network operators and mobile
virtual network operators in the rapidly growing and strategically
important mobile market. Additionally, the combined company will
now benefit from the industry's broadest portfolio of products,
services and solutions, as well as an expanded global geographic
footprint and customer base.
The acquisition of BrightPoint supports Ingram Micro's long-term
growth strategy to expand the company's business in high growth
markets, while increasing its services and solutions capabilities.
BrightPoint brings more than 25,000 B2B customers and over 100,000
points of sale across the globe, along with operations in 27
countries and sales in more than 75 countries around the world. The
companies' combined businesses, as of the end of each company's
2011 fiscal year, had annual revenues of more than $41 billion, with operations in more than 30
countries. Ingram Micro expects to realize annual cost synergies
and efficiencies in excess of $55
million by 2014, and the acquisition is expected to be
accretive to earnings per share by 18
cents in 2013 and 35 cents in
2014, excluding one-time charges and integration costs.
"Today marks a significant milestone for Ingram Micro and
BrightPoint, as well as for our collective associates, partners and
customers," said Alain Monie,
president and CEO of Ingram Micro. "Independently, each company is
a respected industry leader. Together, we are a stronger global
leader, with the capability to serve our customers and vendor
partners with the most comprehensive suite of mobile products,
services and solutions in the industry. We believe this is an
excellent time to significantly expand our mobile business and
device lifecycle services, and together we will continue to meet
the ever-growing technology and services requirements of our
increasingly connected world. With a history of more than 20 years
of innovation and leadership in the mobility industry, BrightPoint
is a great technology company and an outstanding addition to Ingram
Micro."
According to Gartner analyst Tuong Huy
Nguyen in a September 2012
report entitled Ingram Micro Strengthens Mobile Distribution
Expertise: "The traditional IT market has evolved to
incorporate the growing demand for mobility. These markets have
converged to include devices such as smartphones, tablets,
ultramobiles and hybrid devices that have detachable
keyboards....New-product categories present a number of challenges
for devices and services solution providers. Traditional solution
providers need to understand how to incorporate Wireless WAN
solutions into their offerings. Wireless solution providers can
benefit from lessons learned from supply chain and distribution
models in the traditional IT market. Both segments can leverage
these best practices to develop a strategy that effectively handles
the evolving demands of consumers and enterprise users. One option
is a partner with experience in both markets."
BrightPoint, an Ingram Micro company, will initially be led by
Shailendra Gupta, Ingram Micro
senior executive vice president and president Asia-Pacific. Gupta, who successfully led the
seven country integration of Ingram Micro's acquisition of Tech
Pacific in 2004, the company's largest acquisition prior to
BrightPoint, will also head the BrightPoint integration efforts. He
will be assisted by a team consisting of individuals from each
organization, including the following members of BrightPoint's
former senior management team who have taken similar senior
leadership roles with Ingram Micro reporting to Gupta: Mark Howell, President, Americas Mobile;
Bruce Thomlinson, President,
Asia-Pacific Mobile; and Anurag
Gupta, President, EMEA
Mobile. Vincent Donargo,
formerly BrightPoint chief financial officer, has assumed the role
of executive vice president global integration and will also report
to Gupta. Bob Laikin, former
chairman and CEO of BrightPoint, will serve in a senior advisory
role to Monie.
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 the 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 completed acquisition of Brightpoint,
Inc., including: 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 BrightPoint shareholder lawsuits related to the completed
transaction; and other unknown, underestimated and/or undisclosed
commitments or liabilities; and our ability to
achieve the expected benefits and manage the costs of the
transaction.
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
December 31, 2011; 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.
BrightPoint, an Ingram Micro company, is a leading provider of
mobility lifecycle products and services - with the ability to
provide complete lifecycle capabilities from basic warehousing to
software loading, order and accounts receivable management,
end-user fulfillment, and reverse logistics, which includes
services from repair to refurbishment and recycling of wireless
devices.
(Logo: http://photos.prnewswire.com/prnh/20100107/IMLOGO)
SOURCE Ingram Micro Inc.