) acquired an IT services company, Rollouts, to expand its offering
in project management. The financial details of the deal have been
kept under wraps.
Rollouts, along with its online project tracking tools and
project management team, will be integrated into Ingram Micro's
Professional Services. The current acquisition will enable Ingram
Micro to deploy specialized solutions for diversified sectors such
as finance, retail, healthcare, public sector and education that
will help its channel partners.
It is worth mentioning that Ingram Micro has resorted to
acquisitions to expand its geographic reach and product portfolio.
Moreover, certain acquisitions have given the company a strong
foothold in the mid-range enterprise market.
Of the many acquisitions made by Ingram Micro, the most
significant ones are Brightpoint, Inc., Aptec Holdings Ltd. and
Promark Technology Inc. During 2013, Ingram Micro acquired SoftCom,
CloudBlue and Shipwire which enhanced its products and services
These acquisitions have expanded Ingram Micro's presence in the
high-margin products and services market that includes
fee-for-service mobility device lifecycle solutions, traditional
logistics solutions and cloud-based solutions. We believe that
these acquisitions not only enhance the company's offerings but
also help it to garner additional revenues.
Moreover, an improving IT spending trend will help Ingram to
post better results, in our view. Per a study by U.S. IT market
research firm Gartner, global spending on IT could reach $3.7
trillion in 2014, a 2.1% increase from 2013. Ingram will likely
benefit from this spending trend than others because it is the
largest distributor of IT products, has a large scale of operations
and geographical diversity.
Though Ingram Micro's significant European exposure and a high
debt burden are concerns, we remain optimistic about its strategic
relationships with network giants such as
Juniper Networks Inc.
International Business Machines Corp.
Currently, Ingram Micro carries a Zacks Rank #2 (Buy).
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