Brightpoint Acquires Assets Of CellStar

Mobile device and services distributor Brightpoint is acquiring competitor CellStar's U.S. operation and Miami-based Latin American business.

The $88 million cash deal, unveiled this week, will help extend Brightpoint's market reach and spur growth in its business in Latin America, according to Mark Howell, president of the Plainfield, Ind.-based company.

"One of our core strategic growth initiatives is geographic expansion, and we have very limited penetration in Latin America. They have good assets, people and supplier agreements that will certainly accelerate our growth strategy into Latin America," Howell said.

The move comes just two months after Brightpoint acquired Trio Teknologies, a Dallas-based supplier of bundled enterprise wireless solutions for VARs and systems integrators. TrioTek is a master agent for Sprint Nextel, Cingular Wireless and Verizon Wireless and carries devices from several manufacturers. The acquisition brought about 1,000 customers to Brightpoint.

Howell said the acquisitions boost Brightpoint's position as a channel-focused distributor of mobile devices and services, and a big part of the company's 2007 strategy will be to increase the services it offers for the devices it carries. Brightpoint launched its Advanced Wireless Services division for VARs earlier this year, and Howell said the group has met expectations as the distributor builds its channel business.

"We want to make it as easy for VARs to participate in wireless product and service distribution as possible, and one of the ways we can do that is by having the most complete product offering," he said.

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