IRVINE, Calif., Oct. 20, 2015 /PRNewswire/ -- Ingram Micro
Inc. (NYSE: IM) today announced that it has entered into a
definitive agreement under which, subject to closing
conditions, Ingram Micro will acquire Sao Paulo, Brazil-based Grupo AÇÃO (AÇÃO), one
of Latin America's leading
providers of critical value-add IT solutions. In addition to
a portfolio of higher value products, including those from
strategic vendors such as IBM, Oracle, Red Hat, EMC and VMware,
AÇÃO also provides integration services, sales support and
financial services, with operations in Brazil, Colombia, Argentina, Chile, Peru,
Uruguay and Ecuador. AÇÃO key leadership has agreed to
join Ingram Micro upon close of the transaction to assist in the
integration and help drive continued growth and expanding
profitability across the combined business thereafter. The
transaction, which is subject to customary regulatory and other
closing conditions, is expected to close late in the 2015 fourth
quarter. AÇÃO is expected to contribute in excess of $300 million in annual value-add solutions
revenue to Ingram Micro and be modestly accretive to 2016 full year
non-GAAP earnings per share.
Ingram Micro CEO Alain Monié
commented, "As evidenced by a history of strong operating margin
contribution, Ingram Micro has been extremely successful in rapidly
expanding our high value business in Latin America, particularly in Brazil, where we are already established as
one of the leading overall technology distributors and have enjoyed
strong double digit growth rates in local currency for many
quarters. AÇÃO's position as a key solutions value-added
distributor is a perfect complement to our rapidly growing higher
margin business in the region. The company has a long history of
strong business fundamentals, and brings experienced management in
an emerging geography that remains attractive for Ingram Micro over
the long-term. We expect to realize meaningful vendor cross-selling
opportunities in the countries we share, as together we will have a
significantly expanded portfolio of high value offerings to better
serve our customers. We look forward to AÇÃO joining Ingram
Micro and we are confident the addition will enable us to build
further on the region's revenue and profitability
contribution."
Enio Issa, Grupo AÇÃO president,
added, "Ingram Micro is the perfect partner for AÇÃO to help us
continue to drive our established and fast growing high value
business in Latin America and I am
confident that together we can further accelerate the strong
performance our individual companies have provided for our
customers. Ingram Micro understands how to successfully conduct
business in the region and we are excited to join such a globally
recognized world class organization."
About Ingram Micro Inc.
Ingram Micro helps businesses
realize the promise of technology. It delivers a full spectrum
of global technology and supply chain services to businesses around
the world. Deep expertise in technology solutions, mobility, cloud,
and supply chain solutions enables its business partners to operate
efficiently and successfully in the markets they serve. More at
www.ingrammicro.com.
Cautionary Statement for the Purpose of the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of
1995
The matters in this press release that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act, including statements relating to the expected benefits
from the combination, additional revenues, and accretion to
earnings, are based on current management expectations. Certain
risks may cause such expectations to not be achieved and, in turn,
may have a material adverse effect on Ingram Micro's business,
financial condition and results of operations. Ingram Micro
disclaims any duty to update any forward-looking statements.
Important risk factors that could cause actual results to differ
materially from those discussed in the forward-looking statements
include, without limitation: (1) changes in macro-economic and
geopolitical conditions can affect our business and results of
operations; (2) our acquisition and investment strategies may not
produce the expected benefits, which may adversely affect results
of operations; (3) we are dependent on a variety of information
systems, which, if not properly functioning, and available,
or if we experience system security breaches, data protection
breaches or other cyber-attacks, could adversely
disrupt our business and harm our reputation and net sales; (4) the
validity, subsistence and enforceability of the patent portfolio
that we currently hold or acquire may be challenged, and we
have a risk of being involved in intellectual property disputes
that could cause us to incur substantial costs, divert the efforts
of management or require us to pay substantial damages or licensing
fees;(5) failure to retain and recruit key personnel would harm our
ability to meet key objectives; (6) we operate a global business
that exposes us to risks associated with conducting business in
multiple jurisdictions; (7) our failure to adequately adapt to
industry changes could negatively impact our future operating
results; (8) we continually experience intense competition across
all markets for our products and services; (9) termination of a key
supply or services agreement or a significant change in supplier
terms or conditions of sale could negatively affect our operating
margins, revenue or the level of capital required to fund our
operations; (10) substantial defaults by our customers or the loss
of significant customers could negatively impact our business,
results of operations, financial condition or liquidity; (11)
changes in, or interpretations of, tax rules and regulations,
changes in the mix of our business amongst different tax
jurisdictions, and deterioration of the performance of our business
may adversely affect our effective income tax rates or operating
margins and we may be required to pay additional taxes and/or tax
assessments, as well as record valuation allowances relating to our
deferred tax assets; (12) our goodwill and identifiable intangible
assets could become impaired, which could reduce the value of our
assets and reduce our net income in the year in which the write-off
occurs; (13) changes in our credit rating or other
market factors, such as adverse capital and credit market
conditions or reductions in cash flow from operations may affect
our ability to meet liquidity needs, reduce access to capital,
and/or increase our costs of borrowing; (14) we cannot predict the
outcome of litigation matters and other contingencies that we may
be involved with from time to time; (15) Our failure to comply with
the requirements of environmental regulations could adversely
affect our business; (16) we face a variety of risks in our
reliance on third-party service companies, including shipping
companies, for the delivery of our products and outsourcing
arrangements; (18) changes in accounting rules could adversely
affect our future operating results; and (19) our quarterly results
have fluctuated significantly and (20) the AÇÃO transaction may not
be consummated for several reasons, including failure to
receive approval by competent Competition authorities; AÇÃO
vendors may choose to terminate their existing agreements once AÇÃO
has been purchased by us, causing us not to realize the anticipated
business synergies or earning accretion. Additionally, we
risk failing to realize the anticipated benefits of an acquisition
due to, among other things, the unsuccessful integration of the
acquired business. We face a variety of risks associated with our
ability to integrate AÇÃO into our existing systems and
organization including: management's ability to execute its
plans, strategies and objectives for future operations, including
the execution of integration plans; customer demand in these
regions; currency fluctuation; the potential for political unrest;
potential regulatory constraints; and our ability to
achieve the expected benefits and manage the costs of the
transaction. Further, despite its global presence,
Ingram Micro may fail to proactively identify and tap into emerging
markets and geographies. We have historically instituted, and will
continue to institute, changes to our strategies, operations and
processes in an effort to address and mitigate risks; however,
there are no assurances that Ingram Micro will be successful in
these efforts. For a further discussion of significant factors to
consider in connection with forward-looking statements concerning
Ingram Micro, reference is made to our SEC filings, and
specifically to Item 1A-Risk Factors, of our latest Annual
Report on Form 10K.
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SOURCE Ingram Micro Inc.