Technology distribution company
) has acquired value added technology distributor Promark
Technology. The latter particularly focuses on data storage, data
management, and products and services related to electronic
The acquisition, which was closed on November 30, is a prudent
move by Ingram. Not only will the acquisition strengthen Ingram's
position in the premium products and solutions market, but it
will also help the company to strengthen its leadership position
at public sector organizations.
The company is especially gaining from increased orders from
Small & Medium Business (SMB) organizations in Europe,
particularly in Germany and the U.K. This sector continues to
spend on IT even as macroeconomic headwinds continue to impact
overall business in Europe. Ingram is now targeting the SMB
segment in a more comprehensive way, not just in Europe but
across all regions. Moreover, following the acquisition, Ingram
will be able to offer better services at competitive prices.
Cost benefits of cloud computing are pushing different
companies toward massive information technology restructuring and
upgrades. This is one of the reasons that SMBs have been
investing in the area despite the weak economic conditions that
have led to a slump in overall IT spending. We expect this to
continue working in favor of distributors like Ingram. Again, the
company's partners and associates of Promark will offer a vast
array of business opportunities that were previously
Acquisitions have always been the preferred strategy for
Ingram's growth. A couple of months back, Ingram closed the
acquisition of Brightpoint Inc., a leading distributor of
wireless devices, for a cash consideration of $840.0 million.
We remain optimistic about Ingram Micro's strategic
relationship with network giant
Juniper Networks Inc.
) as well as with tech giants such as
However, the company's significant European exposure, debt
burden, and low order volume from government companies may have a
negative impact in the short term.
Currently, Ingram Micro has a Zacks Rank #3 (Hold).
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