IBJNews

UPDATE: Brightpoint's planned sale spawns uncertainty

Back to TopCommentsE-mailPrintBookmark and Share

BrightPoint Inc.’s planned sale, which would eliminate one of Indiana’s six Fortune 500 companies, is casting uncertainty over Hendricks County, where the company has massive distribution operations and is one of the largest employers.

The Indianapolis-based cell phone distributor said early Monday that it would be acquired by California-based Ingram Micro Inc., the world’s largest technology distributor and supply-chain services provider, for about $840 million.

Brightpoint, headquartered on the northwest side, has about 1,300 employees in the Indianapolis area and about 4,000 worldwide. In a press release, Ingram did not specify job cuts but said it expects “to realize cost synergies and efficiencies in excess of $55 million” by 2014.

BrightPoint CEO Robert Laikin founded the company in 1989, when the cell phone industry was in its infancy. Ingram said that after the deal’s closing, Laikin will serve in a “senior advisory role” to its CEO, Alain 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.

Under the deal, Ingram would acquire all of BrightPoint’s common stock for $9 per share in cash. In premarket trading Monday, investors pushed up BrightPoint shares to $8.89, an increase of 64 percent, or $3.48, from Friday's close.

The $9 offer is 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," 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," Ingram’s Monie said 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."

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.

 

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 never thought I'd see the day when a Republican Mayor would lead the charge in attempting to raise every tax we have to pay. Now it's income taxes and property taxes that Ballard wants to increase. And to pay for a pre-K program? Many studies have shown that pre-K offer no long-term educational benefits whatsoever. And Ballard is pitching it as a way of fighting crime? Who is he kidding? It's about government provided day care. It's a shame that we elected a Republican who has turned out to be a huge big spending, big taxing, big borrowing liberal Democrat.

  2. Why do we blame the unions? They did not create the 11 different school districts that are the root of the problem.

  3. I was just watching an AOW race from cleveland in 1997...in addition to the 65K for the race, there were more people in boats watching that race from the lake than were IndyCar fans watching the 2014 IndyCar season finale in the Fontana grandstands. Just sayin...That's some resurgence modern IndyCar has going. Almost profitable, nobody in the grandstands and TV ratings dropping 61% at some tracks in the series. Business model..."CRAZY" as said by a NASCAR track general manager. Yup, this thing is purring like a cat! Sponsors...send them your cash, pronto!!! LOL, not a chance.

  4. I'm sure Indiana is paradise for the wealthy and affluent, but what about the rest of us? Over the last 40 years, conservatives and the business elite have run this country (and state)into the ground. The pendulum will swing back as more moderate voters get tired of Reaganomics and regressive social policies. Add to that the wave of minority voters coming up in the next 10 to 15 years and things will get better. unfortunately we have to suffer through 10 more years of gerrymandered districts and dispropionate representation.

  5. Funny thing....rich people telling poor people how bad the other rich people are wanting to cut benefits/school etc and that they should vote for those rich people that just did it. Just saying..............

ADVERTISEMENT