The two companies will form a combined company to create a global provider of device lifecycle services and applications for the mobility industry
Technology distributor and supply-chain services provider Ingram Micro has signed an agreement to acquire Brightpoint, a provider of device lifecycle services to the wireless industry, for approximately $840m, including $190m of BrightPoint's assumed debt.
Ingram Micro and BrightPoint will form a combined company to create a global provider of device lifecycle services and applications for the mobility industry.
The combined company will have a enhanced customer reach, expanded global footprint and customer base in the mobility market.
BrightPoint founder, chairman and chief executive officer Robert J. Laikin said, "This powerful combination will also provide compelling opportunities for BrightPoint's vendor partners, customers and employees to benefit from the financial strength, scale and broad geographic reach of the world's largest technology distribution company."
Ingram Micro president and chief executive officer Alain Monie said, "BrightPoint's offerings are highly complementary to both our logistics and distribution businesses, which will enable us to go to market with the leading portfolio of mobility device lifecycle services and solutions."
BrightPoint was established in 1989 and generated $5.2bn in revenues while it employs approximately 4,000 people and operates facilities in 24 countries.
Ingram Micro expects to fund the transaction with existing credit facilities and available cash balances while the company has secured a commitment for a $300m debt facility to be provided by Morgan Stanley Senior Funding to supplement its existing committed debt capacity.
The transaction requires customary regulatory approvals and the transaction is expected to be completed before the end of the year.
