Ingram Micro Acquires SoftCom Further Enhances Ingram Micro's Cloud Services and Aggregation Platform, Offers SMB IT Channel Advantages in Rapidly Growing Cloud Ecosystem
SANTA ANA, Calif., Sept. 12, 2013 /PRNewswire/ -- Ingram Micro Inc. (NYSE: IM), the world's largest wholesale technology distributor and a global leader in supply-chain and mobile device lifecycle services, today announced it has acquired Toronto, Canada-based SoftCom Inc., a leading cloud marketplace and global service provider offering domain name management, web hosting and cloud infrastructure services, among other SMB-focused solutions. Founded in 1997, SoftCom operates brands such as myhosting.com and mail2web.com and has a seasoned team of engineers with deep experience in building and developing cloud aggregation and web solutions.
SoftCom will operate as a wholly owned subsidiary of Ingram Micro. Turker Sokullu, former CEO and co-founder of SoftCom, will continue to lead the company as executive director, reporting to Nimesh Dave, Ingram Micro executive vice president, global business process and cloud computing. Further details of the transaction, which closed today, were not disclosed.
"SoftCom's expertise and proven track-record in cloud services will enhance our cloud offerings road map and aggregation platform," said Alain Monie, Ingram Micro president and CEO. "Today, we deliver more than 150 solutions from over 50 leading cloud vendors and with this acquisition we believe we will further improve the way our global partners and customers sell, service and procure cloud-based solutions. This addition also gives our partners another competitive service advantage in the rapidly growing cloud market, especially with small-to-midsized businesses, and is another step forward in our strategy to better serve our customers and partners with high-value IT services and cloud-delivered solutions. We welcome SoftCom's associates, partners and customers to the Ingram Micro family and are excited by the value they will bring to our channel partners."
"Joining Ingram Micro provides SoftCom with a whole new range of exciting business opportunities," said Sokullu. "We have grown SoftCom's business by relentlessly focusing on our customers and building a culture of trust and camaraderie among employees with a passion for delivering high performance web and cloud solutions. We are excited by Ingram Micro's shared values and vision and look forward to contributing to their global growth and diversification strategy."
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The matters in this press release that are forward-looking statements are based on current management expectations. Certain risks may cause such expectations to not be achieved and, in turn, may have a material adverse effect on Ingram Micro's business, financial condition and results of operations. Ingram Micro disclaims any duty to update any forward-looking statements. Important risk factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, without limitation: (1) we have made and expect to continue to make investments in new businesses and initiatives, including acquisitions, which could disrupt our business and have an adverse effect on our operating results; (2) we are dependent on a variety of information systems, which, if not properly functioning, or unavailable, or if we experience system security breaches, data protection breaches or other cyber-attacks, could adversely disrupt our business and harm our reputation and earnings; (3) changes in macro-economic conditions may negatively impact a number of risk factors which, individually or in the aggregate, could adversely affect our results of operations, financial condition and cash flows; (4) we continually experience intense competition across all markets for our products and services; (5) we operate a global business that exposes us to risks associated with conducting business in multiple jurisdictions; (6) our failure to adequately adapt to IT industry changes could negatively impact our future operating results; (7) terminations of a supply or services agreement or a significant change in supplier terms or conditions of sale could negatively affect our operating margins, revenue or the level of capital required to fund our operations; (8) substantial defaults by our customers or the loss of significant customers could have a negative impact on our business, results of operations, financial condition or liquidity; (9) changes in, or interpretations of, tax rules and regulations, changes in the mix of our business amongst different tax jurisdictions, and deterioration of the performance of our business may adversely affect our effective income tax rates or operating margins and we may be required to pay additional taxes and/or tax assessments, as well as record valuation allowances relating to our deferred tax assets; (10) changes in our credit rating or other market factors such as adverse capital and credit market conditions or reductions in cash flow from operations may affect our ability to meet liquidity needs, reduce access to capital, and/or increase our costs of borrowing; (11) failure to retain and recruit key personnel would harm our ability to meet key objectives; (12) we cannot predict with certainty what losses we may incur as a result of litigation matters and contingencies that we may be involved with from time to time; (13) we may incur material litigation, regulatory or operational costs or expenses, and may be frustrated in our marketing efforts, as a result of environmental regulations or private intellectual property enforcement disputes; (14) we face a variety of risks in our reliance on third-party service companies, including shipping companies for the delivery of our products and outsourcing arrangements; (15) changes in accounting rules could adversely affect our future operating results; and (16) our quarterly results have fluctuated significantly. We also face a variety of risks associated with our acquisitions of Brightpoint, Inc., Aptec and Promark, and any other acquisitions we may make, including: management's ability to execute its plans, strategies and objectives for future operations, including the execution of integration plans; growth of the mobility industry, the government contracts business, and in new and untapped markets in geographies outside the U.S.; and other uncertainties or unknown, underestimated and/or undisclosed commitments or liabilities; and our ability to achieve the expected benefits and manage the costs of the integrations of our acquisitions.
Ingram Micro has instituted in the past and continues to institute changes to its strategies, operations and processes to address these risk factors and seek to mitigate their impact on Ingram Micro's results of operations and financial condition. However, no assurances can be given that Ingram Micro will be successful in these efforts. For a further discussion of significant factors to consider in connection with forward-looking statements concerning Ingram Micro, reference is made to Item 1A Risk Factors of Ingram Micro's Annual Report on Form 10-K for the fiscal year ended Dec. 29, 2012; other risks or uncertainties may be detailed from time to time in Ingram Micro's future SEC filings.
Founded in 1997, SoftCom Inc. is an industry leading provider of cloud hosting and business communication services to more than 2.5 million users in 140 countries worldwide with support in 26 languages. SoftCom also manages the myhosting.com and mail2web.com brands. The company is a Parallels Platinum Service Provider Partner, Microsoft Silver Partner and member of Research in Motion (RIM) Blackberry Alliance program.
About Ingram Micro Inc.
Ingram Micro is the world's largest wholesale technology distributor and a global leader in IT supply-chain, mobile device lifecycle services and logistics solutions. As a vital link in the technology value chain, Ingram Micro creates sales and profitability opportunities for vendors and resellers through unique marketing programs, outsourced logistics and mobile solutions, technical support, financial services and product aggregation and distribution. The company is the only global broad-based IT distributor, serving approximately 160 countries on six continents with the world's most comprehensive portfolio of IT products and services. Visit www.ingrammicro.com.
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