Ingram Micro buys out Tech Pacific

One of world's leading IT distributor, Ingram Micro has announced that it has signed a definitive agreement to acquire Sydney-based Tech Pacific for approximately $493 million in cash. This move is expected to help Ingram significantly expand its APac business. The transaction is expected to be accretive to Ingram Micro's 2005 earnings (excluding integration costs) and close by the end of 2004, subject to customary closing conditions.

"This acquisition provides a giant leap forward in our regional development. Tech Pacific is a strong, profitable player in some of the region's key markets. It is the market leader in two of the region's most stable markets -- Australia and New Zealand -- as well as the rapidly growing, emerging market of India," says Ingram Micro Inc. chairman and CEO Kent Foster. 

Tech Pacific CEO Shailendra Gupta and CFO Guy Freeland would be retained while Ingram Micro Asia Pacific president Alain Monie will continue to lead the region. As a result of this acquisition, Ingram Micro Asia Pacific will nearly double in size in terms of revenues and become the leading distributor in India, Australia, New Zealand, Malaysia, Hong Kong and Singapore. The company also expects its profitability for Asia Pacific to significantly improve, with regional operating margins expected to strengthen in the next fiscal year.

"We've been seeking a strategic partner that could help our customers -- both resellers and vendors -- expand their reach into new products, services and geographies," says Shailendra. "At the same time, we wanted to ensure a stable transition for our associates. Ingram Micro is the world's largest distributor and the only distributor with a truly global presence, so a combination offers an ideal strategic fit," he adds.

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