Ingram Micro (IM) adds to its portfolio on a regular basis. In addition to the bunch of cloud offerings announced earlier this year, the information technology (IT) distributor recently expanded its U.S. vertical market offerings to include retail and finance.
The company has gained deep domain expertise and knowledge by acquiring and partnering some leading companies across the globe. This has prompted it to align its business with vertical industries, such as financial services and retail.
The current expansion will enable Ingram Micro to deploy specialized solutions for diversified sectors such as finance, retail, healthcare, public sector and education that will help its channel partners.
The retail and finance industries are highly competitive and encounter significant challenges. Companies in these markets are seeking innovative technology to create value, reduce costs and deliver market-specific IT solutions and services. We believe that the expansion will enable the company to better target the potential in these markets.
It is worth mentioning that Ingram Micro has resorted to acquisitions to expand its geographic reach and product portfolio. Moreover, certain acquisitions have given the company a strong foothold in the mid-range enterprise market.
Of the many acquisitions made by Ingram Micro, the most significant ones are Brightpoint, Inc., Aptec Holdings Ltd. and Promark Technology Inc. During 2013, Ingram Micro acquired SoftCom, CloudBlue and Shipwire, which enhanced its products and services portfolio.
Separately, Ingram Micro has been seeing increasing orders from small & medium business (SMB) organizations in Europe, particularly in Germany and the UK. Ingram is now targeting the SMB segment in a more comprehensive way, not just in Europe but across all regions.
Ingram Micro has been striking distribution deals with a number of original equipment manufacturers thus expanding its product portfolio. Moreover, Ingram Micro’s exposure in cloud computing products is expected to remain its key growth driver.
We remain fairly optimistic about Ingram Micro’s strategic relationship with network giants such as Juniper Networks Inc. (JNPR), Cisco (CSCO) and International Business Machines (IBM). The company’s growing SMB exposure and improving profitability are encouraging. However, its significant European exposure and debt burden are concerns.
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