(This story has been updated with additional input from Ingram executive Paul Bay.)
Distribution giant Ingram Micro has been acquired from its current owner, Chinese conglomerate HNA Group, by private investment firm Platinum Equity.
The deal, which is valued at $7.2 billion, is expected to close in the first half of 2021.
“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 in a press statement. “We have the resources and the experience to help the company pursue an aggressive agenda of growth and transformation.”
Alain Monié will remain Ingram’s CEO after the acquisition closes, and the company’s headquarters will remain in Irvine, Calif.
“Platinum’s sector expertise, global operating capabilities and financial resources make it the ideal partner,” said Monié in prepared remarks. “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. We will maintain a strong balance sheet and will gain additional flexibility and resources to execute on our long-term strategic objectives. HNA has been a good partner for Ingram Micro, enabling us to continue to innovate and expand our global businesses. We look forward to the opportunity to accelerate this trajectory with Platinum.”
Paul Bay, who has been Ingram’s executive vice president and president of global technology solutions since January, will also remain with the company under its new ownership.
“Platinum shares Ingram Micro’s focus on associate and partner experience, and they recognize the importance of relationships and partnering to do more and deliver value,” said Bay in remarks emailed to ChannelPro. “I believe this partnership with Platinum will allow us to become an even more indispensable business partner to our channel partners globally. My team and I are looking forward to partnering with Platinum to accelerate our growth plans, which are to win together with partners, deliver a better customer experience around technology and deliver more high value, high growth business solutions. I’m in this for the long-term to support our partners with giving businesses more ways to run better, grow faster and do more for the customers they serve.”
An early leader in the shift among big-time distributors from the traditional “pick, pack, and ship” business model toward emerging markets like cloud computing and, more recently, the Internet of Things, Ingram serves over 250,000 customers and partners with more than 2,000 vendors. It has over 350,000 employees in 60 countries.
The company exceeded $47 billion in revenue during its 2019 fiscal year, which ended last December. Despite tumultuous market conditions this year that have roiled global economies generally and the IT industry specifically, the distributor grew profits 2.1% in its fiscal third quarter, which concluded September 26th.
Founded in 1995, Platinum currently has some $23 billion in assets worldwide and a portfolio of approximately 40 companies, including performance marketing software maker Centerfield and freight bill processor Data2Logistics. It had a holding in data center infrastructure vendor Vertiv as well until early this year.