Ingram Micro To Buy Tech Pacific For $493M

Ingram Micro expects the transaction to add to 2005 earnings, excluding integration costs, and to close by the end of 2004.

Tech Pacific was formed in 1981 and generated Australian $3.1 billion in revenues for the 2003 fiscal year. The privately held company employs about 1,800 people and operates 15 distribution centers in Australia, New Zealand, India, Hong Kong, Malaysia, Singapore and Thailand. It serves over 25,000 resellers and 75 vendors with a portfolio of more than 10,000 products.

Ingram Micro said Tech Pacific's chief executive officer Shailendra Gupta and chief financial officer Guy Freeland will be retained. Alain Monie, president of Ingram Micro Asia Pacific, will continue to lead the region.

As a result of the deal, Ingram Micro Asia Pacific will nearly double in size in terms of revenue and profitability will significantly improve, with regional operating margins expected to strengthen in the 2005 fiscal year.

Shares of Ingram Micro were up 8 cents, or 0.5 percent, at $15.72 in morning trading on the New York Stock Exchange.

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