Private equity, Enterprise, IT distribution, Content

Ingram Micro Valuation Rises; Will Higher Buyout Bids Emerge?

Platinum Equity's pending acquisition of distribution giant Ingram Micro from China's HNA Group has a new twist.

Indeed, Ingram Micro's valuation has risen $200 million since the Platinum Equity deal -- originally valued at $7.2 billion -- was announced in December 2020, NIKKEI Asia reports. As a result, HNA Tech seems to be indicating that it wants higher buyout bids for Ingram Micro.

According to the NIKKEI Asia report:

"Given the new circumstances, in which Ingram Micro's performance is entering a new and positive phase, the company will have to seriously consider that and try various other channels and strategies to seek a buyer that can provide a better offer price in order to further enhance the company's profitability," according to Zhu Yingfeng, vice president of the insurer who doubles as a director on HNA Tech's board.

HNA: Seeking Higher Bids for Ingram Micro?

Read between the lines, and its sounds like HNA Tech wants Platinum Equity to sweeten the offer price for Ingram Micro, while also leaving the door ajar for additional bidders to potentially emerge.

HNA Tech's shareholders are set to vote June 16 on whether to move forward with the existing Platinum Equity deal, NIKKEI Asia noted. Ingram Micro said in May 2021 that the acquisition by Platinum Equity was expected to close at the end of June 2021.

Ingram Micro and Platinum Equity did not respond to NIKKEI Asia's request for comment.

Ingram Micro's Channel Partner Focus

Regardless of Ingram's ownership status, it's a safe bet that the distributor will maintain its long-term business. That focus involves these three key pillars, Executive VP Paul Bay told ChannelE2E in November 2020:

  1. Win together.
  2. Transform the IT customer experience across the entire lifecycle.
  3. Deliver more solutions and more deeply engage the company’s global partner communities.

Meanwhile, M&A activity in the distribution market remains strong. Among the other deals to note: Synnex and Tech Data are merging in a technology distribution deal valued at $7.2 billion, according to a March 2021 disclosure from those companies.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.