Spotlight
An archive of past spotlight issues.
The martinwolf team tracks noteworthy mergers and acquisitions, and offers
commentary on issues that impact our industry.
"For Platinum, this acquisition is the culmination of more than a decade investing in the technology and IT distribution space."
-Platinum Equity Partner Jacob Kotzubei
July 16,2021
Platinum Equity Acquires Ingram Micro
*Financial Information ($USD)
- Enterprise Value: $7.2 Billion
- EV/FY20 Revenue: 0.15x
Transaction Details
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Platinum Equity announced that it has completed the acquisition of Ingram Micro Inc. from HNA Group.
- Ingram Micro’s total enterprise value in the transaction was $7.2 billion, including $5.9 billion in equity value
- Ingram will retain CEO Alain Monié and remain headquartered in Irvine, California.
martinwolf Analysis
- Long Time in the Making: This transaction is “the culmination of more than a decade investing in the technology and IT distribution space,” according to Platinum Equity partner and thought leader Jacob Kotzubei. “We know the industry well and our team is ready to hit the ground running to support Alain and the company’s leadership group.”
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Closing the Loop: As we outlined in our analysis when the transaction was first announced, this deal brings Ingram Micro from a troubled Chinese conglomerate to a US-based leader of its space. Expect Platinum to leverage its superior knowledge and capabilities to achieve significant returns.
- Looking Ahead: Platinum Equity paired with Ingram Micro sets up a formidable battle between the larger and recently merged Tech Data and Synnex combination. Expect profitability to increase as costs improve for each heavyweight as they leverage economies of scale and process improvement.
For more information about this transaction, click here to read the press release from Platinum Equity.
martinwolf was not the advisor in this transaction.
