Supply-chain services provider Ingram Micro announced plans to acquire rival BrightPoint (CELL) for approximately $840 million in a deal that will further boost Ingram Micro’s dominance in the fulfillment services business. The deal is valued at a 66% premium over BrightPoint’s closing price last Friday.
Ingram Micro noted the deal will expand its global geographic footprint and customer base in the “rapidly growing and strategically important mobility market.” The deal is expected to close by the end of the year.
(Check out RCR Wireless News’ recent Feature Report on the supply-chain and fulfillment services business “Device evolution spurs supply management challenges.”)
Ingram Micro has made inroads into the mobile space, including deals with Verizon Wireless and Nokia. BrightPoint has been more focused on the mobile space, having expanded both its domestic and international presence.
BrightPoint generated more than $5.2 billion in revenues last year and employs approximately 4,000 people across facilities in 24 countries. The company said it handled more than 112 million wireless devices in 2011.
BrightPoint CEO, Chairman and Founder Robert Laikin will serve in a senior advisory role to Ingram Micro President and CEO Alain Monie. A number of BrightPoint executives has already committed to joining Ingram Micro following the transaction, including Americas president Mark Howell; Asia-Pacific president Bruce Thomlinson; Europe, Middle East and Africa president Anurag Gupta; and CFO Vincent Donargo.
Ingram Micro said it will finance the acquisition through existing credit facilities and available cash balances.
Analysts noted that they did not see any regulatory hurdles preventing the deal from being approved.
BrightPoint’s stock was trading up more than 62% on the news at $8.81 per share, while Ingram Micro’s stock was trading up around 3%.
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