Ingram Micro to Acquire Grupo ACAO, One of Latin America's Leading Value-Add Distributors
IRVINE, Calif. - Ingram Micro Inc. (NYSE: IM) today announced that it has entered into a definitive agreement under which, subject to closing conditions, Ingram Micro will acquire Sao Paulo, Brazil-based Grupo AÇÃO (AÇÃO), one of Latin America's leading providers of critical value-add IT solutions. In addition to a portfolio of higher value products, including those from strategic vendors such as IBM, Oracle, Red Hat, EMC and VMware, AÇÃO also provides integration services, sales support and financial services, with operations in Brazil, Colombia, Argentina, Chile, Peru, Uruguay and Ecuador. AÇÃO key leadership has agreed to join Ingram Micro upon close of the transaction to assist in the integration and help drive continued growth and expanding profitability across the combined business thereafter. The transaction, which is subject to customary regulatory and other closing conditions, is expected to close late in the 2015 fourth quarter. AÇÃO is expected to contribute in excess of $300 million in annual value-add solutions revenue to Ingram Micro and be modestly accretive to 2016 full year non-GAAP earnings per share.
Ingram Micro CEO Alain Monié commented, "As evidenced by a history of strong operating margin contribution, Ingram Micro has been extremely successful in rapidly expanding our high value business in Latin America, particularly in Brazil, where we are already established as one of the leading overall technology distributors and have enjoyed strong double digit growth rates in local currency for many quarters. AÇÃO's position as a key solutions value-added distributor is a perfect complement to our rapidly growing higher margin business in the region. The company has a long history of strong business fundamentals, and brings experienced management in an emerging geography that remains attractive for Ingram Micro over the long-term. We expect to realize meaningful vendor cross-selling opportunities in the countries we share, as together we will have a significantly expanded portfolio of high value offerings to better serve our customers. We look forward to AÇÃO joining Ingram Micro and we are confident the addition will enable us to build further on the region's revenue and profitability contribution."
Enio Issa, Grupo AÇÃO president, added, "Ingram Micro is the perfect partner for AÇÃO to help us continue to drive our established and fast growing high value business in Latin America and I am confident that together we can further accelerate the strong performance our individual companies have provided for our customers. Ingram Micro understands how to successfully conduct business in the region and we are excited to join such a globally recognized world class organization."
About Ingram Micro Inc.
Ingram Micro helps businesses realize the promise of technology. It delivers a full spectrum of global technology and supply chain services to businesses around the world. Deep expertise in technology solutions, mobility, cloud, and supply chain solutions enables its business partners to operate efficiently and successfully in the markets they serve. More at www.ingrammicro.com.
SOURCE Ingram Micro Inc.
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