Indianapolis-based Brightpoint Inc. said Monday it has agreed to acquire Touchstone Wireless Repair and Logistics LP in an $80 million deal expected to close by the end of the year.
In a news release, Brightpoint said the Pennsylvania-based company will help expand the services it offers the wireless industry. Brightpoint distributes wireless devices, handling 24.9 million units in the third quarter alone. Touchstone repairs and remanufactures wireless devices, handling the so-called “reverse logistics” that occur after a sale.
"The combination of our companies creates the wireless industry's most compelling forward and reverse logistics service provider,” Brightpoint Chairman and CEO Robert J. Laikin said in a prepared statement.
The transaction is expected to improve Brightpoint’s 2011 profits, Laikin said.
Last month, Brightpoint reported third-quarter revenue of $889 million, up 3 percent from the same period last year. Profit declined 12 percent, to $9.8 million, due in part to one-time tax benefits recorded in the prior-year period.
A Brightpoint subsidiary struck the deal with Touchstone on Dec. 10, according to a filing with the Securities and Exchange Commission. If the transaction does not close by the end of the year, either party could call off the deal under certain circumstances.