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

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.