IM Wins 2 Deals, Post Acquisition - Analyst Blog


Using the capabilities of the acquired company BrightPoint, Ingram Micro ( IM ) has launched a new business unit, Ingram Micro Mobility, at the recently held Mobile World Congress in Barcelona, Spain. 

The new unit combines Ingram Micro's existing mobile group with BrightPoint, a device lifecycle services provider, which had been acquired by the company last year. The combined capabilities and reach of the two companies will strengthen Ingram Micro's position as a provider of technology and mobility services to companies across the globe.

The BrightPoint acquisition is already adding to Ingram Micro's performance. It enabled the company to win a distribution agreement from GLOBO, a technology service provider. GLOBO has come up with a technology innovation and delivery agreement comprising Enterprise Mobility Management software and Telecom software products and solutions for which IM will have a sole distribution agreement.

Ingram Micro's mobility division has also signed an IT supply-chain agreement with ACN Digital Phone Service, LLC. ( ACN ). As per this contract, the company will forward and reverse logistics services for mobile virtual network operators (MVNO) in the U.S.

Thus, the acquisition has turned out to be beneficial for IM, as it is resulting in more and more deal wins for the company. Moreover, BrightPoint's tie-ups with companies like Research In Motion Ltd. ( BBRY ), HTC Corp. and Nokia Corp. ( NOK ) will help IM in the long run. It has also been winning deals from the likes of MetroPCS Communications Inc. ( PCS ) and Sprint Nextel Corp. ( S ), which will continue to benefit the company in the days to come.

This apart, the company has been instrumental in integrating BrightPoint quickly. Expected cost synergies and sizable contributions going forward could make BrightPoint a key driver of its growth.

Although Ingram Micro looks in pretty good shape, BrightPoint has a few negatives in the form of some lost customers and a high debt burden. The combined company is however doing well.

We have a Zacks Rank #2 (Buy) on Ingram Micro shares.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ACN , BBRY , IM , NOK , PCS

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