Ingram Micro Expands Reach with $840M Brightpoint Acquisition

By Jessica Binns, Contributing Editor — July 03, 2012

Ingram Micro Inc. is buying Brightpoint, Inc. for $840 million. Under the purchase agreements, Ingram Micro will acquire all of BrightPoint 's outstanding shares of common stock for $9.00 per share in cash, a 66 percent premium to BrightPoint's closing stock price on June 29, 2012, and a 35 percent premium to the 90-day average trading price, and includes the value of approximately $190 million of BrightPoint's estimated debt, as of June 30, 2012.

Ingram Micro's BrightPoint acquisition aims to create a leading global provider of device lifecycle services and solutions for the mobility industry. Together, Ingram Micro and BrightPoint will have significant customer reach and deep relationships with key vendors, network operators and mobile virtual network operators.

BrightPoint, established in 1989 and with corporate offices in Indianapolis, generated $5.2 billion in revenues, of which nearly $550 million was from unique value-added logistics services, and total gross margin of approximately 7.2 percent of revenues for the 2011 fiscal year. The company employs approximately 4,000 people and operates facilities in 24 countries, with sales in more than 75 countries around the world. BrightPoint serves more than 25,000 business-to-business customers with more than 100,000 points of sale across the globe and handled more than 112 million wireless devices in 2011.

Ingram Micro expects to fund the transaction with existing credit facilities and available cash balances. Ingram Micro has obtained a commitment for a $300 million debt facility through Morgan Stanley Senior Funding, Inc., which would supplement its existing committed debt capacity. Ingram Micro expects to realize annual cost synergies and efficiencies in excess of $55 million by 2014, and the transaction is expected to add at least 18 cents per share in 2013 and 35 cents in 2014, excluding one-time charges and integration costs.

The following members of BrightPoint's senior management team have committed to senior roles within the new organization after the acquisition is complete: existing regional presidents, Mark Howell (Americas), Bruce Thomlinson (APAC) and Anurag Gupta (EMEA), and Vincent Donargo, BrightPoint's chief financial officer. In addition, Robert Laikin will serve in a senior advisory role to Alain Monie.

The transaction requires approval of a majority of BrightPoint's outstanding shares at a special meeting, which is expected to take place in the 2012 third quarter. Closing of the transaction is also conditioned on customary regulatory approvals. The transaction is expected to close before the end of the year.

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