Technology distribution company,
) recently announced its acquisition of CloudBlue Technologies,
Inc. (CloudBlue), a leading provider of enterprise IT asset
disposition, onsite data destruction and e-waste recycling
services worldwide. Financial details of the deal were not
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The acquisition will help Ingram Micro to expand its supply-chain
solutions portfolio. Moreover, the addition of CloudBlue services
will also help Ingram to simplify the complexity associated with
the management of IT assets and consumer electronics, in
accordance with environmental and data security regulations.
CloudBlue provides its customers with secure and sustainable
reverse logistics solutions, which create a protected business
environment. It is one of the leading providers of enterprise IT
asset disposition and onsite data destruction services including
e-waste recycling. The addition of CloudBlue Technologies will
boost Ingram's Logistics revenues.
Ingram Micro reported revenues of $10.3 billion in the second
quarter of 2013, up 17.4% from $8.8 billion in the year-ago
quarter. Improvement in revenues was mainly due to contributions
from the Brightpoint and Aptec Holdings acquisitions.
Integration of BrightPoint is on track, with revenue contribution
and expected cost synergies likely to make BrightPoint a key
driver of growth.
We believe that the improving IT spending trend will help Ingram
to post better results going forward. Moreover, management's
focus on the high-margin market and strategic acquisitions to
grow market share are encouraging.
Though the company's significant European exposure and high debt
burden are concerns, we are positive about Ingram Micro's
strategic relationship with network giant
Juniper Networks Inc.
), as well as tech giants such as
) and Microsoft Corp.
Currently, Ingram Micro has a Zacks Rank #3 (Hold).