Ingram buys out TechPacific for $493 M

By siliconindia   |   Tuesday, 28 September 2004, 07:00 Hrs
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NEW DELHI: Ingram Micro on Monday announced acquiring Tech Pacific, one of the region’s largest technology distributors, for Australian $700 million (approximately $493 million) in cash, which includes the assumption of debt.

Tech Pacific Holding’s Chief Executive Officer Shailendra Gupta and Chief Financial Officer Guy Freeland will be retained, strengthening Ingram Micro’s leadership structure in the region.

The transaction is expected to be accretive to Ingram Micro’s 2005 earnings (excluding integration costs) and close by the end of 2004, subject to customary closing conditions.

Tech Pacific, established in 1981 and with principal operations in Sydney, generated Australian $3.1 billion in revenues and operating margins of approximately 2.0% of revenues for the 2003 fiscal year.

The privately-held company employs approximately 1,800 people and operates 15 distribution centres in Australia, New Zealand, India, Hong Kong, Malaysia, Singapore and Thailand. It serves more than 25,000 resellers and 75 vendors with a portfolio of more than 10,000 products.

¬ďAs the only global IT distributor with operations in Asia Pacific, we have long recognised the growth opportunities of the region.

This acquisition provides a giant leap forward in our regional development,¬Ē said Mr Kent Foster, chairman and chief executive officer, Ingram Micro.

Alain Monié, president, Ingram Micro Asia Pacific, will continue to lead the region. The main benefit of the acquisition is that Ingram Micro Asia Pacific will nearly double in size in terms of revenues and become the leading distributor in India, Australia, New Zealand, Malaysia, Hong Kong and Singapore.

Customers will benefit from the two companies’ complementary product portfolios and strong vendor relationships.

While both companies have diverse product offerings that include systems, networking and peripherals, Ingram Micro has a large components mix and Tech Pacific is stronger in software. Together, they are expected to create a product portfolio that is unparalleled in the region.

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