Well?
Ingram Micro to acquire intelligent electronics' reseller network division; deal boosts
company's ties to key manufacturers: offers new product opportunities for small,
medium and large resellers
BusinessWire, Wednesday, April 30, 1997 at 09:05
SANTA ANA, Calif.--(BUSINESS WIRE)--April 30, 1997--Ingram Micro
Inc. (NYSE:IM) announced today it has signed a definitive
agreement to acquire the Intelligent Electronics Inc. (NASDAQ:INEL)
indirect business, its Reseller Network Division (RND).
The agreement will give Ingram Micro, the world's largest
wholesale distributor of technology products and services, an
important new revenue source as well as strengthen the company's
relationships to resellers through new programs, better access to
key manufacturers and improved operations. Ingram Micro will also
become the primary wholesaler to IE's XLSource division, an
authorized direct sales organization and reseller for products of
more than 80 technology manufacturers, for an initial term of up to
three years.
Under the terms of the agreement, Ingram Micro will pay a total
of $78 million, subject to adjustment, in a combination of cash and
assumption of liabilities in excess of current assets. Pending
regulatory review and IE stockholder approval, the transaction
should be completed this summer.
"This acquisition reinforces Ingram Micro's commitment to
profitable growth, and to improve the productivity and efficiency of
our associates and business partners," said Sanat Dutta, president
of Ingram Micro U.S. "By providing our reseller customers with
better access to products, programs and services, we will help them
become more competitive and ultimately more profitable."
According to Richard D. Sanford, chairman and CEO of IE,
"As a result of the transaction, the company will gain a single
focus on the direct business market."
RND Business Model
The RND business model -- also known as "wholesale aggregation"
or "master reseller" -- is complementary to Ingram Alliance, which
was introduced in 1994 and offers resellers access to products from
the industry's leading hardware suppliers under specialized terms.
The RND, based in Englewood, Colorado, primarily serves five key
suppliers -- Apple Computer Inc., Compaq Computer Corporation,
Hewlett-Packard, IBM and Toshiba America Information Systems --
manufacturers with strong relationships to Ingram Micro and Ingram
Alliance.
"We are firmly committed to adopt, enhance and build on RND's
premier service programs, including the National Service Network,
the Business Technology Centers, and the Intelligent Systems Group
affiliates," said Doug Antone, president of Ingram Alliance.
"A Good Move"
Reactions from the high-tech reseller community on the Ingram
Micro-IE RND acquisition have been positive.
Jeff Tietzer, president of OnLine Connecting Point said, "The
combination of Intelligent Electronics' long-term customer base and
the capabilities provided by the Intelligent Systems Group, coupled
with Ingram Micro's distribution capabilities and successful track
record of execution, should be a big plus for the channel." |
