IT and Business Insights for SMB Solution Providers

Ingram Micro Buys Value-Added POS and Payments Distributor The Phoenix Group

The acquisition brings new solutions expertise and partnerships in hot markets to Ingram at a time of declining demand for hardware and packaged software products. By Rich Freeman

Ingram Micro Inc. has acquired The Phoenix Group, a value-added distributor of products and services for the point-of-sale and digital payments markets.

Terms of the deal, which will result in The Phoenix Group becoming an integrated division of Ingram, were not disclosed.

Based in O’Fallon, Mo., The Phoenix Group sells in the U.S. and Canada. The company brings new POS and electronic payments expertise to Ingram, as well as partnerships with leading vendors in those segments, including VeriFone, Ingenico, MagTek, RDM, PAX, Dejavoo, and TechTrex.

“This acquisition increases our capabilities and market share in the fast-growing, high-value electronic payments space,” said Jeff Yelton, vice president and general manager of Irvine, Calif.-based Ingram’s Advanced Solutions group, in a press statement.

“The Phoenix Group has earned all major network, PCI and [point to point encryption] certifications, which opens up new opportunities for Ingram Micro’s customers to grow their businesses in the POS market,” the statement continues. “The Phoenix Group’s capabilities also provide our partners with immediate access to the payment processing keys necessary for electronic payments, a capability unmatched in the channel; the ability to maintain and upgrade those devices; and access to next-level POS technology.”

POS and payment solutions are both hot opportunities at present. Global sales of mobile POS technology alone will expand at a 35.4 percent CAGR through 2025 to $47.7 billion, according to Transparency Market Research, while Capgemini and BNP Paribas project the global volume of electronic payment transactions to increase by 10.9 percent annually on average through 2020, to 726 billion.

“Combining our assets and expertise with a global industry leader like Ingram Micro allows us to deliver greater value to our customers and partners to help accelerate their business success in an industry that continues to grow in scope and demand,” said Scott Rutledge, former CEO of The Phoenix Group, in prepared remarks. “Additionally, this combination provides significant benefits to our customers who can now access Ingram Micro’s end-to-end solutions portfolio, including lifecycle services, cloud-based offerings and a world-class supply chain.”

Rutledge will remain with Ingram in an unspecified capacity.

Seeking to augment their solution design and delivery capabilities at a time of declining demand for hardware and packaged software products, broadline distributors like Ingram have been snapping up value-added distributors with focused skills. Last year, Ingram itself purchased NETXUSA Inc., a specialist in unified communications, collaboration, and VoIP systems. More recently, top Ingram competitor SYNNEX Corp., of Fremont, Calif., acquired the North and Latin American portions of security, networking, and unified communications expert Westcon-Comstor.

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