Softbank, majority owner of Sprint, is moving $3 billion in annual revenue into Brightstar, its other major American holding. Brighstar is a leading distributor of mobile devices and components, and last year Softbank agreed to buy 57% of Brightstar for $1.26 billion. Now Softbank is selling its Commerce and Services unit to Brighstar for an undisclosed amount. The deal is expected to close in April and to increase Brightstar’s annual revenue by $3 billion.
The unit Softbank is selling fits nicely with Brightstar’s existing business. Softbank’s Commmerce and Services unit distributes IT products to customers in the corporate and education markets, and develops accessories for mobile devices. The Japanese conglomerate describes the unit as “the founding business of SoftBank.” It is now part of SoftBank BB, which provides broadband infrastructure to Internet service providers.
This is the latest development in the ongoing integration of Softbank, Brightstar and Sprint. At the time of the Brighstar acquisition, the companies said the Buying and Innovation Group previously formed by Softbank, Sprint and Brightstar would become part of Brightstar. Softbank also said that Brightstar would have a “preferential right to provide services including distribution, supply chain, handset insurance, buy-back and trade-in, multi-channel retail and financial services to certain Softbank telecommunications affiliates.”
More recently, Softbank appointed Brightstar CEO Marcelo Claure to the board of Sprint. Claure has been with Brightstar since the late 1990’s, and the company credits him with Brightstar’s growth in device logistics and distribution. Forbes ranks the Florida-based firm as one of the top 100 private companies in the United States, estimating annual revenue at $6.3 billion. The purchase of Softbank’s distribution unit, along with organic growth, should boost that number above $10 billion this year.
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