Ingram Micro to Buy Anovo, Boost Global Service Portfolio
After a year-long discussion, Ingram Micro Inc. (IM) finally signed a binding offer with the French investment company, Butler Capital, to acquire Anovo, a Paris-based provider of after-sale support for phone and electronic devices. The acquisition is expected to close during the first quarter of 2015.
Founded in 1987, Anovo offers secure and sustainable reverse logistics solutions as well as repair, refurbishment and regeneration services in the technology market which extend the lifecycle of high-tech products. Annually, the company services over 20 million products through 5,000 associates operating across 11 countries.
Although the financial terms of the deal have not been disclosed, news sources claim that it could be worth around €100 million. Further, Ingram Micro anticipates that the acquisition will add over $300 million as revenues annually and be slightly accretive to non-GAAP earnings per share in 2015.
The acquisition is expected to help Ingram Micro expand its global portfolio of service offerings and strengthen supply chain capabilities in the European and Latin American markets.
It is worth mentioning that Ingram Micro has resorted to acquisitions to expand its geographic reach and product portfolio. Moreover, certain acquisitions have strengthened the company’s foothold in the mid-range enterprise market.
Of the many acquisitions made by Ingram Micro, the most significant ones are Brightpoint, Inc., Aptec Holdings Ltd. and Promark Technology Inc. During 2013, the company acquired SoftCom, CloudBlue and Shipwire which enhanced its products and services portfolio.
Separately, Ingram Micro has been striking distribution deals with a number of original equipment manufacturers to expand its product portfolio. Moreover, the company’s exposure in cloud computing products is expected to remain the key growth driver.
We remain fairly optimistic about Ingram Micro’s strategic relationship with network giants such as Juniper Networks Inc. (JNPR), Cisco Systems Inc. (CSCO) and IBM Corp. (IBM). The company’s growing SMB exposure and improving profitability are encouraging. However, its significant European exposure and debt burden are concerns.
Currently, Ingram Micro carries a Zacks Rank #3 (Hold).
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