Given the soft cell phone market and Brightpoint’s recent struggles, a sale to California-based Ingram Micro for about $840 million makes sense, analysts say. The two companies announced the acquisition early Monday morning.
The $840M deal, which would eliminate one of Indiana’s six Fortune 500 companies, is casting uncertainty over Hendricks County, where the company is one of the largest employers.
Indianapolis-based BrightPoint Inc. has agreed to be acquired by California-based Ingram Micro Inc. for about $840 million, the two companies said early Monday morning.
Performance varied widely as industries ebbed, flowed.
BlackBerry maker Research In Motion Ltd., which said it wouldn’t turn a profit this quarter, accounts for about 10 percent of BrightPoint’s distribution business.
Shares of the wireless-device logistics provider fell more than 8 percent Wednesday morning after the company lowered its annual earnings guidance in response to the loss of a major customer.
Brightpoint sues Miami rival Brightstar twice in one week over its hiring of two former executives of the local wireless-phone distributor.
The Indianapolis-based wireless distributor accuses Mitch Black, who left Brightpoint last year, of taking company trade secrets to a new job with a direct competitor. Brightstar Corp. also is named in the lawsuit.
The 200,000-square-foot center is Brightpoint’s third “reverse logistics” and repair facility. The others are in Puerto Rico and Fort Worth, Texas.
Second-quarter revenue was $1.23 billion, well ahead of the consensus estimate of $1.09 billion and 57 percent ahead of the same quarter a year earlier.
Some analysts say investors overreacted to the risk Brightpoint would lose T-Mobile as a customer. Merriman Capital's Scott Searle estimates the earnings impact from losing that client would be “dramatically less than investors originally feared” and “is more than adequately reflected in the stock price.”