Ingram Micro (IM) and Monexa Services Ink Distribution Deal

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Technology distribution company, Ingram Micro (IM) signed a deal with Canada-based Monexa Services Inc. for the distribution of enterprise billing solutions in the U.S. and Canada.

Monexa’s cloud-based enterprise billing solutions enables enterprises to customize pricing of their subscription-based offerings. This effectively helps enterprises to attract new customers while retaining existing ones. Monexa’s solutions are aimed at improving business performance of enterprises and simplifying the billing process. These solutions will also enable Ingram’s channel partners to price their cloud-based services in a customized manner.

Leveraging Ingram Micro’s distribution channels, Monexa will be able to market its products easily and expand in newer markets as well. The company continues to invest to improve its capabilities in all its operating markets, especially in Canada.

Ingram Micro has been striking distribution deals with a number of original equipment manufacturers thus expanding its product portfolio. Its exposure to the cloud computing segment is expected to remain its key growth driver.

Additionally, we believe that the improving IT spending trend will help Ingram post better results, going forward. Management’s focus on high-margin markets and strategic acquisitions to grow market share should also help.

Separately, Ingram Micro has been gaining from increased orders from small & medium business (SMB) organizations in Europe, particularly in Germany and the U.K. Ingram is now targeting the SMB segment in a more comprehensive way, not only in Europe but across all regions.

Though Ingram Micro’s significant European exposure and a high debt burden are concerns, we remain fairly optimistic about its strategic relationships with network giants such as Juniper Networks Inc. (JNPR), Cisco (CSCO) and International Business Machines Corp. (IBM).

Currently, Ingram has a Zacks Rank #3 (Hold).

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