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Ingram Micro Expands Asia Pacific Presence

Ingram Micro Inc. today announced during a conference call that it has entered into an agreement that will increase its reach in the Asia Pacific region.

The company will acquire Australia-based tech distributor Tech Pacific for approximately $493 million ($700 million Australian dollars). The transaction is expected to close by the end of this year and has Ingram Micro assuming Tech Pacific's debt.

Tech Pacific's CEO Shailendra Gupta and CFO Guy Freeland are expected to remain while Ingram Micro's Asian Pacific president, Alain Monie will lead the region. Excluding integration costs, the transaction is expected to be accretive to Ingram Micro's earnings for the 2005 fiscal year.

Tech Pacific is a Sydney, Australia headquartered privately held company employing approximately 1,800 people across 15 distribution centers in Australia, New Zealand, India, Hong Kong, Malaysia, Singapore and Thailand. As the result of this deal, Ingram Micro expects that revenues from its Asia Pacific operations will almost double in size.

"We became aware of the opportunity a few months ago and have spent time exploring it since then we saw it as a significant opportunity for us, the more we looked at it, the better we liked it," Kent Foster, chairman and CEO of Ingram Micro said on the morning conference call. "I can say that this past week we reached a conclusion that it made sense for both companies to join together, and we're very happy about that conclusion."

Ingram Micro expects customers to benefit from the complementary product portfolios offered by the two companies. The companies recognize that Tech Pacifica is stronger in software while Ingram Micro is noted for its large components mix. Both companies have huge product portfolios of systems, peripherals and networking equipment.

"We've been seeking a strategic partner that could help our customers -- both resellers and vendors -- expand their reach into new products, services and geographies," Tech Pacific's CEO Shailendra Gupta said in a statement. "At the same time, we wanted to ensure a stable transition for our associates. Ingram Micro is the world's largest distributor and the only distributor with a truly global presence, so a combination offers an ideal strategic fit."