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Ingram Micro buys Tech Pacific

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CIOL Bureau
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SANTA ANA, Calif.: Ingram Micro Inc, a leading distributor of computers and related parts, said it has agreed to buy Sydney-based Tech Pacific for A$700 million ($493 million) for significant expansion in Asia Pacific.

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Tech Pacific, generated Australian $3.1 billion in revenues and operating margins of approximately two percent of revenues for the 2003 fiscal year. The privately-held company employs approximately 1,800 people and operates 15 distribution centers in Australia, New Zealand, India, Hong Kong, Malaysia, Singapore and Thailand.

"This acquisition provides a giant leap forward in our regional development. Tech Pacific is a strong, profitable player in some of the region's key markets," said Kent Foster, chairman and chief executive officer, Ingram Micro Inc., in a PR Newswire statement.

Tech Pacific's chief executive officer, Shailendra Gupta and chief financial officer, Guy Freeland are to be retained, while Alain Monie, president, Ingram Micro Asia Pacific, will continue to lead the region, stated the release.

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Tech Pacific's Gupta said that the transaction provides strategic benefits for many of the company's stakeholders. "We've been seeking a strategic partner that could help our customers -- both resellers and vendors -- expand their reach into new products, services and geographies," Gupta added.

According to Spierkel, Ingram Micro intends to integrate the Tech Pacific operations into its Asia Pacific business unit, with integration activities commencing in early 2005.

The deal will nearly double Ingram's revenues, the release said.

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