Ingram Micro Buys Consumer Electronics PlayerBy Jessica Davis | Posted 2007-06-14 Email Print
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The IT distribution giant sees more convergence between commercial and consumer technologies.Ingram Micro signed a $96 million deal to acquire part of DBL Distributing Inc., a U.S. consumer electronics distributor.
The IT technology distribution giant said the acquisition marked another step forward in its consumer electronics strategy and another sign the space between consumer and commercial technologies is thinning.
"This strategy positions Ingram Micro at the forefront of two significant trends: the continuing convergence of commercial and consumer technologies and the growing importance of retailers in the marketplace," said CEO Greg Spierkel in a statement. "The transaction is an example of how we plan to deploy capital in the futurethrough strategic acquisitions that spur growth, enhance profitability and expand our addressable market."
" We plan to leverage this opportunity by cross-selling our current selection of information technology products to DBL's customers as well as offer our customers access to DBL's extensive CE accessory products," he added.
DBL will operate as a wholly owned subsidiary of Santa Ana, Calif.-based Ingram Micro, keeping the same brand name, business model and management structure to simplify the transition for customers and vendor partners of both companies.
Ingram Micro plans to pay for the transaction through an existing financing facility.
The distributor said the transaction is expected to add about 3 cents to earnings per share in 2008 and 6 cents to earnings per share in 2009.