Ingram Completes $3B CLS Asset Sale; Distributor Mulls More Acquisitions

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Ingram Micro has completed the sale of its Commerce & Lifecycle Services Business (CLS) to CMA CGM Group for roughly $3 billion. The planned asset sale was first disclosed in December 2021.

Ingram Micro, owned by private equity firm Platinum Equity since mid-2021, has been refining its revenue mix and accelerating its SaaS and monthly recurring revenue opportunities for MSPs and channel partners.

Ingram Micro’s evolution, led by CEO Paul Bay, includes organic R&D along with acquisitions. Key moves include acquiring BRLink in December 2021 and Keenondots in January 2022. The company’s M&A team continues to closely evaluate additional deals, sources tell ChannelE2E.

Ingram Micro: Recent Acquisitions Explained

Among the completed deals: BRLink is a Top 250 Public Cloud MSP, according to ChannelE2E research. BRLink has worked with Amazon Web Services since 2010. The public cloud MSP’s practice areas include DevOps/Automation, ServerLess, and web application services. The company also helps customers to manage and monitor AWS workloads for customers.

The BRLink deal sounds somewhat similar to Ingram’s acquisition of CloudLogic in October 2021. CloudLogic focuses on IT Strategy, Cloud Enablement, Cloud Transformation, Cloud Cost Optimization, and Migration services.

Meanwhile, Keeonondots is an invoice automation software provider headquartered in Enschede, The Netherlands. The Keenondots Cloud Automation Platform is based in Ingram’s CloudBlue technology. Among the potential Keenondots benefits to partners:

  • The platform, offered as a managed service, “enables partners to fully automate their service delivery and invoicing processes,” Ingram asserted.
  • Keenondots also “assists ISVs to enter the CloudBlue ecosystem by helping them with the development of a CloudBlue Connector.” Keenondots is based in the Netherlands and is partner of CloudBlue. For more information visit www.keenondots.com.

Ingram Micro: Distribution and Cloud Competition

Ingram’s rivals also remain in evolution mode and/or growth mode.

For instance, TD Synnex recently achieved the Amazon Web Services (AWS) Cloud Management Tools Competency. Also in recent days, TD Synnex said it expects adjusted revenue to grow 6 percent to 8 percent during fiscal 2022. Moreover, distributor expects to generate 6 percent to 7 percent compound annual revenue growth (CAGR) over the next three to four years, TD Synnex indicated during its 2022 Investor Day on March 29, 2022.

Meanwhile, D&H Distributing continues to gain momentum with an “Everything as a Service” strategy that extends from cloud and SaaS options to Device as a Service (DaaS) partner capabilities.

Also of note: Pax8 is likely emerging as the next unicorn in the MSP technology market. Originally a cloud distributor, Pax8 has evolved into a cloud marketplace that increasingly extends beyond U.S. borders.

Pax8 has been busy on the funding and M&A fronts. Among the milestones to note:

Ingram Micro: Well Positioned For…

Back at Ingram, that distributor remains well-positioned for acquisitions and government engagements thanks to Platinum Equity’s ownership, according to FitchRatings — a debt ratings service that evaluated Ingram’s business in September 2021.

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