Ingram Micro Expands Into e-Commerce Services Market With Acquisition Of Shipwire
Immediately Augments Go-to-Market Capability with Innovative Brand and Leading Technology for Rapidly Growing e-Commerce Market
Enhances Ingram Micro Logistics' Ability to Serve e-Commerce Needs of Large Retailers with Significantly Reduced Onboarding Time and Complexity
SANTA ANA, Calif., Oct. 28, 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 that it has entered into a definitive agreement pursuant to which it will acquire Shipwire, Inc., a leading provider of global fulfillment services for emerging multi-channel brands. The award-winning Shipwire platform provides on-demand e-commerce fulfillment and supply chain management from a network of global pick-pack and ship warehouses to more than 1,000 emerging brands and web retailers. Integrated into the top e-commerce platforms and based in Silicon Valley, Shipwire has pioneered cloud logistics with on-demand fulfillment center and shipping tools, Web services, and innovative developer tools, that can all be used together to solve complex global logistics problems.
"Ingram Micro is already well established as an expert in supply-chain services. The addition of Shipwire will enable us to accelerate our growth in a $40 billion market for e-commerce fulfillment services that is estimated to be growing by double-digits through 2015(1)," said Alain Monie, Ingram Micro CEO. "Additionally, we will utilize Shipwire's platform capabilities to better serve our medium and large brand customers by significantly reducing onboarding time and complexity, giving our customers the flexibility to quickly operationalize their e-commerce opportunities. This acquisition supports our strategy to diversify our revenue streams into faster growing, higher-margin businesses and takes us one step closer to our vision of becoming a global leader in supply-chain services."
Shipwire serves brands from more than 50 countries, selling to buyers across the world from facilities in North America, Europe and Asia. Shipwire will operate as a wholly owned subsidiary of Ingram Micro. Damon Schechter, founder and CEO of Shipwire, will continue to lead the company as president of Shipwire, reporting directly to Robert Gifford, Ingram Micro executive vice president, Global Logistics. The acquisition, which is subject to regulatory approvals and other customary closing conditions, is expected to close before the end of the year.
"We are excited to join forces with Ingram Micro to accelerate the Shipwire platform much more quickly than we could have as a stand-alone company," said Schechter. "Our customers and partners will see immediate benefits from our joining a global supply chain leader. Shipwire will now have the growth capital to expand our platform into software solutions for enterprise brands and marketplace retailers. Ingram Micro has the global footprint and supply-chain expertise that helps us fulfill our customer promise of 'Enterprise Logistics For Everyone™'".
(1) Transport Intelligence (Ti), North American e-commerce Logistics 2012
Shipwire provides cloud-based logistics services, shipping software and outsourced pick-pack and ship fulfillment services from warehouses around the world. Online sellers send their inventory to one of Shipwire's fulfillment centers in the U.S., Canada, Europe or Asia, and instantly connect Shipwire to their online store or marketplace. Customers buy from the merchant online. Shipwire uses "least-cost routing" to optimally pick, pack and ship the order to the buyer faster, and for less. For a free trial contact 1-888-Shipwire or sign-up at Shipwire.com/trial.
About Ingram Micro Inc.
Ingram Micro is the world's largest wholesale technology distributor and a global leader in IT supply-chain and mobile device lifecycle services. 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 us at IngramMicro.com.
Cautionary Statement for the Purpose of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
The matters in this press release that are forward-looking statements, including statements relating to the expected benefits of acquisitions and the financial performance of the combined company, 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 this acquisition 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, and to realize the expected benefits of our acquisitions; 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.
Additional risk factors include: our ability to timely complete the transaction, if at all; our ability to complete the transaction considering the various closing conditions, including those conditions related to regulatory approvals; the financial performance of Shipwire and Ingram Micro through the completion of the merger; Shipwire's business may not perform as expected due to transaction-related uncertainty or other factors; the ability of Shipwire and Ingram Micro to retain relationships with customers; management's ability to execute its plans, strategies and objectives for future operations; growth of the e-commerce fulfillment and supply-chain services industries; and our ability to achieve the expected benefits of the transaction.
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.
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