Orange County Business Journal

Ingram Closes BrightPoint Deal

Chris Casacchia Monday, October 15, 2012

Ingram Micro Inc. has finalized its $840 million buy of BrightPoint Inc., the Santa Ana-based company said on Monday.

Ingram’s priciest deal to date holds the potential for inroads to high-growth, high-margin business lines of products and services for the mobility segment, which includes smart phones, accessories, tablets, laptops and activation services, among others.

The deal for the Indianapolis-based wholesale distributor is the first acquisition under Chief Executive Alain Monié, who pegged the mobility segment for growth after taking the helm earlier this year.

The BrightPoint buy adds more than 25,000 customers and 100,000 distribution points across the globe.

The company saw $6.3 billion in sales last year with earnings of $48.8 million.

It competes with Miami-based Brightstar Corp., which had $5.7 billion in revenue last year, for the title of world’s largest wireless device distributor.

The buy is expected to save Ingram more than $55 million in costs by 2014, the company said. It is expected to add about $27 million to Ingram earnings in 2013 and $53 million in 2014, excluding one-time charges and integration costs.

Analysts on average forecast adjusted profits of about $295 million for Ingram in 2012.

BrightPoint will initially be led by Shailendra Gupta, Ingram Micro senior executive vice president and president of its Asia-Pacific region.

Gupta led the seven country integration of Australia-based Tech Pacific Ltd., which Ingram acquired in 2004 for $530 million−now its second largest deal.

Vincent Donargo, BrightPoint’s chief financial officer, has taken the role of executive vice president global integration and reports to Gupta.

Founder and Chief Executive Robert Laikin will serve in a senior advisory role to Monié.

Ingram is the largest technology distributor in the world with $36.3 billion in sales last year and $244.2 million in earnings.

It typically nets less than a penny on the dollar, and competes against several big distributors, including Phoenix-based Avnet Inc. and Arrow Electronics Inc. in Englewood, Colo.