Platinum Equity today announced that it has completed the acquisition of Ingram Micro Inc. from HNA Technology Co., Ltd, a part of HNA Group, for a total enterprise value of $7.2 billion, in a transaction that includes $5.9 billion of equity value.
With $49 billion in revenue for fiscal year 2020, Ingram Micro is the world’s largest provider of technology solutions and mobility, cloud, platform and supply chain solutions. Founded in 1979 and headquartered in Irvine, California, Ingram Micro is an integral part of the technology and ecommerce ecosystems, helping its partners maximize the value of the technology that they make, sell or use.
“As the largest technology distributor in the world, Ingram Micro plays a vital role helping companies innovate and adapt, which is especially important now as we continue to emerge from the pandemic,” said Platinum Equity Chairman and CEO Tom Gores. “Corporate IT priorities are shifting, ecommerce is thriving, and the pace of digitization continues to accelerate, which makes the technology products, services and advanced solutions the company provides more important than ever. We are excited to put our resources and experience to work helping Ingram Micro navigate these especially fluid times.”
With more than 35,000 employees and operations in 60 countries, the company serves more than 170,000 customers and partners with over 1,600 vendors, including the world’s best-known technology companies. Through its vast global infrastructure and focus on cloud, mobility, technology lifecycle, supply chain and technology solutions, Ingram Micro enables business partners to operate more efficiently and successfully in the markets they serve.
“For Platinum, this acquisition is the culmination of more than a decade investing in the technology and IT distribution space,” said Platinum Equity Partner Jacob Kotzubei, whose team has led multiple technology transactions, including Platinum Equity’s investment in Vertiv. “We know the industry well and our team is ready to hit the ground running to support Alain and the company’s leadership group. With a strong balance sheet and access to Platinum’s financial and operational resources, Ingram Micro has a lot of attractive opportunities ahead.”
Alain Monié will continue to lead Ingram Micro as Chief Executive Officer supported by his leadership team, and the company will continue to be headquartered in Irvine, California.
“We are proud to join Platinum’s global portfolio of industry-leading companies and are excited to begin our future with a prominent, US-based partner with the desire and substantial resources to accelerate our innovation and our vendor and customer services and solutions strategies on a worldwide basis,” said Mr. Monié. “Platinum shares our vision for Ingram Micro and is dedicated to us continuing to develop and offer innovative solutions across the IT ecosystem while providing a superior experience for our customer and vendor partners and a work environment where our associates can thrive.”
“In addition to its core distribution business, Ingram has built strong capabilities in logistics services and cloud and hybrid cloud solutions,” said Platinum Equity Managing Director Matt Louie. “The company has built those businesses methodically through a combination of organic and acquisitive investment. We expect to accelerate those efforts and aim for an even higher growth trajectory.”
Morgan Stanley & Co. LLC and Goldman Sachs & Co. served as financial advisors, and Morgan Lewis as legal counsel, to Platinum Equity on the acquisition of Ingram Micro. Willkie Farr & Gallagher LLP provided financing legal counsel, J.P. Morgan, Bank of America and Morgan Stanley Senior Funding, Inc. provided debt financing for the acquisition.
To learn more about the story behind the Ingram Micro deal, click here.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $25 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.
About Ingram Micro
Ingram Micro helps businesses realize the promise of technology. It delivers a full spectrum of global technology and supply chain services to businesses around the world. Deep expertise in technology solutions, mobility, cloud, and supply chain solutions enables its business partners to operate efficiently and successfully in the markets they serve. Unrivaled agility, deep market insights and the trust and dependability that come from decades of proven relationships set Ingram Micro apart and ahead. Discover how Ingram Micro can help you realize the promise of technology. More at www.ingrammicro.com.