Feeds

Ingram buys Aussie distie for $493m

Doubles Asia Pac business

  • alert
  • submit to reddit

Ingram Micro is shelling out $493m cash including assumption of debt for Tech Pacific, an Australian distie.

The deal will see Ingram's Asia Pac operations double in size. Sydney-based Tech Pacific turned over AUS$3.1bn ($2.2bn) in 2003, generating operating margins of two per cent. It is the market leader in Australia and New Zealand.

Ingram, the world's biggest IT distie, is to integrate Tech Pacific into its own Asia-Pac business, which suggests job losses and property closures to us. It inherits 1800 people and 15 distribution centres in Australia, New Zealand, India, Hong Kong, Malaysia, Singapore and Thailand.

Ingram expects the deal to be accretive to 2005 earnings, excluding integration costs. It anticipates some revenue loss, dues to market overlap in some countries - in other words, there will be less credit to go around for resellers. But it also expects cost savings and improved operating margins to outweigh this. ®

Related stories

Six charged in $10m Ingram computer fraud
Bell Micro buys UK distie

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.