IBJNews

BrightPoint to be acquired for $840M by California firm

Back to TopCommentsE-mailPrintBookmark and Share

BrightPoint Inc. has agreed to be acquired by California-based Ingram Micro Inc. for about $840 million, the two companies said early Monday morning.

In a deal announced just after midnight, Ingram Micro said it would acquire all outstanding shares of Indianapolis-based BrightPoint's common stock for $9 per share in cash.

Santa Ana-based Ingram Micro is the world's largest technology distributor and supply-chain services provider.

BrightPoint, founded in Plainfield in 1989, provides logistics to sellers of wireless devices. It has more than 1,300 employees in the Indianapolis area and about 4,000 worldwide.

The acquisition price is a 66-percent premium to BrightPoint's closing price of $5.41 per share on Friday and a 35-percent premium to BrightPoint's 90-day average trading price.

The price includes about $190 million in BrightPoint debt.

"The transaction with Ingram Micro will deliver significant value to our shareholders and will enable us to accelerate our global growth strategy," BrightPoint founder, chairman and CEO Robert J. Laikin said in a prepared statement. "This powerful combination will also provide compelling opportunities for BrightPoint's vendor partners, customers and employees to benefit from the financial strength, scale and broad geographic reach of the world's largest technology distribution company."

The acquisition must be approved by BrightPoint shareholders at a special meeting that is likely to take place in the third quarter. The deal is also subject to regulatory approvals. The companies said the deal should close by the end of the year.

"BrightPoint is a well-run company with leading, high-value services and solutions coupled with excellent distribution channels in the global mobility market," said Ingram Micro CEO Alain Monie in a prepared statement. "BrightPoint's offerings are highly complementary to both our logistics and distribution businesses, which will enable us to go to market with the leading portfolio of mobility device lifecycle services and solutions."

Laikin will remain with the merged company in a senior advisory role to Monie. BrightPoint senior executives Mark Howell, Bruce Thomlinson, Anurag Gupta, and Vincent Donargo have "committed to senior roles within the new organization," the companies said.

BrightPoint was named one of the country's 500 largest companies in 2011, ranking 463rd with $5.2 billion in revenue. Ingram was ranked 81st, with $36.3 billion in revenue.

"This is the right time for this transaction," Laikin said. "I believe strongly that Ingram Micro is the best partner for our business and employees going forward, and I am excited at the prospect of BrightPoint becoming part of a Fortune 100 company."

Ingram Micro said it has obtained $300 million in debt financing from Morgan Stanley Senior Funding Inc. to help pay for the acquisition.

The companies did not say what impact the deal would have on BrightPoint's presence in Indianapolis or on the company's work force, but it did say the merged companies expect "to realize annual cost synergies and efficiencies in excess of $55 million by 2014."
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I took Bruce's comments to highlight a glaring issue when it comes to a state's image, and therefore its overall branding. An example is Michigan vs. Indiana. Michigan has done an excellent job of following through on its branding strategy around "Pure Michigan", even down to the detail of the rest stops. Since a state's branding is often targeted to visitors, it makes sense that rest stops, being that point of first impression, should be significant. It is clear that Indiana doesn't care as much about the impression it gives visitors even though our branding as the Crossroads of America does place importance on travel. Bruce's point is quite logical and accurate.

  2. I appreciated the article. I guess I have become so accustomed to making my "pit stops" at places where I can ALSO get gasoline and something hot to eat, that I hardly even notice public rest stops anymore. That said, I do concur with the rationale that our rest stops (if we are to have them at all) can and should be both fiscally-responsible AND designed to make a positive impression about our state.

  3. I don't know about the rest of you but I only stop at these places for one reason, and it's not to picnic. I move trucks for dealers and have been to rest areas in most all 48 lower states. Some of ours need upgrading no doubt. Many states rest areas are much worse than ours. In the rest area on I-70 just past Richmond truckers have to hike about a quarter of a mile. When I stop I;m generally in a bit of a hurry. Convenience,not beauty, is a primary concern.

  4. Community Hospital is the only system to not have layoffs? That is not true. Because I was one of the people who was laid off from East. And all of the LPN's have been laid off. Just because their layoffs were not announced or done all together does not mean people did not lose their jobs. They cherry-picked people from departments one by one. But you add them all up and it's several hundred. And East has had a dramatic drop I in patient beds from 800 to around 125. I know because I worked there for 30 years.

  5. I have obtained my 6 gallon badge for my donation of A Positive blood. I'm sorry to hear that my donation was nothing but a profit center for the Indiana Blood Center.

ADVERTISEMENT