Ingram Micro Buys Anovo for Approximately 80M Pounds

As per its plan announced in Nov 2014, Ingram Micro Inc. IM closed the acquisition of Anovo, a Paris-based provider of after-sales support for phones and electronic devices. Although the financial terms of the deal have not been disclosed, news sources claim that it could be worth around £80 million.

Founded in 1987, Anovo offers secure and sustainable reverse logistics solutions as well as repair, refurbishment and regeneration services in the technology market, which helps to extend the life of high-tech products. Annually, the company services over 20 million products through 4,200 associates operating across 10 countries.

Ingram Micro expects the acquisition to add over $300 million in revenues annually and be slightly accretive to non-GAAP earnings in 2015. Further, the acquisition will help Ingram Micro expand its global portfolio of service offerings and strengthen supply chain capabilities in the European and Latin American markets.

Anovo has dealings with a number of the world's largest mobile network operators and hardware manufacturers such as Samsung, Microsoft MSFT Mobiles, BlackBerry, Sony Mobile, LG, Huawei and many others. We believe that this takeover will be a value addition for the company and fortify its position in the industry against top players like Arrow Electronics, Inc. ARW.

It is worth mentioning that Ingram Micro had to resort to acquisitions in an attempt to expand both its geographic reach and product portfolio. Certain acquisitions particularly strengthened the company’s foothold in the mid-range enterprise market. Of these, the most significant ones include those of Brightpoint, Inc., Aptec Holdings Ltd. and Promark Technology Inc.

Simultaneously, Ingram Micro has been striking distribution deals with a number of original equipment manufacturers to expand its product portfolio. Moreover, the company's exposure in the cloud computing products space is expected to remain the key growth driver.

Going forward, we remain fairly optimistic about Ingram Micro’s strategic relationship with network giants such as Juniper Networks Inc. and International Business Machines Corporation IBM. The company’s growing small and medium business exposure and improving profitability are also encouraging. However, its high debt burden remains a major concern.

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