The global investment firm, Platinum Equity, has just announced that it intends to acquire Ingram Micro, the world’s largest provider of technology logistics services and solutions. The transaction has been valued at $7.2 billion. The sale is expected to be completed by the first half of the New Year, subject to owner HNA Technology’s shareholder approval as well as the usual regulatory checks and approvals.
Starting in 1979 and based in Irvine, California, Ingram Micro is a specialist in helping its partners to leverage the value of the technology that they manufacture, sell or employ. FY 2019 revenue was an impressive $47 billion.
Over 35,000 employees operate in 60 countries, serving in excess of 250,000 customers and partners with more than 2,000 vendors, the vendors distributed include household names in technology, around the world. Ingram Micro’s vast global infrastructure with its focus on cloud, mobility, and more, empowers its business partners to operate efficiently in global markets.
“We know Ingram Micro and the industry very well and have been investors in the technology and IT distribution and solutions sectors for more than a decade,” said Platinum Equity Partner, Jacob Kotzubei.
“Ingram Micro is an industry leader, one of the largest companies in the world and will be a cornerstone investment in our portfolio,” said Platinum Equity Chairman and CEO, Tom Gores.
After the deal completes, Alain Monié will continue to lead Ingram Micro as Chief Executive Officer, and the company will retain its current HQ in Irvine. Of the news, Monié said:
“Teaming with Platinum provides an opportunity to further strengthen our competitive advantage in the cloud, speed our digital transformation and accelerate the expansion of our solutions and services portfolio, particularly for high-value markets. We will also be able to broaden our geographic reach even faster while penetrating new industries and verticals”
“Ingram Micro’s scale, diverse customer and vendor relationships and track record for innovation create the perfect platform for us to help accelerate growth, both organically and through additional M&A,” said Platinum Equity Managing Director, Matthew Louie.
Louie also commented on the exciting opportunities now afforded to Platinum Equity in the fast-moving and, fast-growing sector of cloud and hybrid solutions, as more companies engage in digital transformation.
Morgan Stanley & Co. LLC and Goldman Sachs & Co. are acting as financial advisers, and Morgan Lewis as legal counsel, to Platinum Equity on the acquisition of Ingram Micro. Willkie Farr & Gallagher LLP is providing financing legal counsel, and debt financing commitments have been obtained from J.P. Morgan, Bank of America and Morgan Stanley Senior Funding, Inc.
