Paul Bay has taken over operations of Ingram Micro Inc.’s worldwide technology solutions business, which last year accounted for about 90% of the Irvine-based tech wholesale distributor’s revenue.
The move comes as Chief Executive Alain Monié plans to spend more time on Ingram’s growing Cloud and Commerce & Lifecycle Services (CLS) units, areas with greater potential for profitability at the firm.
Ingram Micro is by far Orange County’s largest company by revenue, with $50 billion annually; it has operations in 64 countries, with more than 1,700 vendors and more than 200,000 customers.
Ingram is the world’s largest wholesale distributor of computer and technology products, shipping software and other tech items across the world.
Much of its core distribution business has historically operated on razor-thin margins. It has looked to diversify into more profitable areas of work of late, with cloud-based services becoming an increasing area of focus.
Ingram said it plans to “exponentially ramp the growth and profitability” of the Cloud and CLS units, which it has invested heavily in over the past five or so years.
Monié Moves
“The globalization of the IT market presents an incredible opportunity for Ingram Micro to play to our strengths and accelerate our leadership position as the IT channel’s top-performing global business partner,” Bay said in the announcement of his promotion last month.
The industry veteran executive took over as executive vice president and president of Global Technology Solutions on Jan. 1. He reports to Monié.
Bay joined the company in 1995, leaving to run a Missouri-based software provider from 2006 to 2010, then returning to Ingram Micro. He had been serving as Ingram Micro executive vice president and group president of the Americas. He will continue to lead the company’s Americas Technology Solutions business.
Starting this month with Bay’s new role, Monié will be dedicating additional time to the company’s Cloud and CLS businesses.
“I plan to spend significant additional time with the teams to further speed execution on our objectives, including increased investment to capture the tremendous market opportunities before us,” Monié said.
Profit Growth
Ingram Micro’s Cloud and CLS businesses together are expected to contribute half of the company’s total profit growth in 2019, the company said.
Ingram Micro reported net income of $352.2 million in 2018.
In another executive shift, Mike Zilis, who led much of Ingram Micro’s international strategy and operations, succeeded Gina Mastantuono as chief financial officer, also effective Jan. 1.
HNA Holdings
A unit of China-based HNA Group bought Ingram Micro for $6 billion in 2016.
The company, with 1,200 workers in Irvine, was rumored to be on the sales block over much of 2018 for $7.5 billion, but no deal was completed.
Bay last month told online trade publication CRN.com that, contrary to industry speculation, HNA was not struggling with debt issues as the result of the 2016 buy of Ingram, and that the Irvine firm was financially healthy.
“The acquisition that happened with Ingram Micro did not leverage our balance sheet, unlike other acquisitions that are going on that are out there right now,” Bay told CRN.
“Our balance sheet is not leveraged because of the acquisition.”
He cited positive credit agency ratings from Moody’s to back up his claim, and noted that the same couldn’t be said for one of Ingram’s main competitors.
Bay didn’t cite that competitor by name, but appeared to be alluding to Clearwater, Fla.-based distributor Tech Data, which Moody’s recently placed “under review for downgrade.”
Tech Data officials have refuted Bay’s claims.
