Technology distribution company,
), has added several new vendors, such as Panasonic, Falconstor,
Jabra and Whiptail, to Promark's General Services Administration
(GSA) schedule. Incidentally, Ingram had acquired Promark
Technology, a value added technology distributor in late
The Promark acquisition not only strengthened Ingram's
position in the premium products and solutions market, but also
helped to strengthen its leadership position among public sector
organizations. Leveraging Promark's GSA and Ingram's distribution
channels technology, companies can market their products
Moreover, Ingram is expected to invest strategically in
Promark to make it more affordable and cater to the needs of the
tech industry at competitive prices. Recently, networking major,
), also chose Ingram to market its technology products and
solutions. Some of the other vendors include
Ingram has been 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, 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
Additionally, we believe that the improving IT spending trend
will help Ingram to post better results ahead. Moreover,
management's focus on the high-margin market and strategic
acquisitions to grow market share is encouraging.
However, the company's significant exposure to Europe and its
high debt burden are concerns, going forward.
Currently, Ingram has a Zacks Rank #3 (Hold).
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