World's Largest Technology Distributor Pursues Profitable Growth and New
Channel Opportunities in the Adjacent AIDC/POS Market With Key Player,
Nimax, Inc.
SANTA ANA, Calif., July 28 /PRNewswire-FirstCall/ -- Ingram Micro Inc. (NYSE: IM) today signed a definitive agreement to purchase the assets of privately held Nimax, Inc. of San Diego, Calif., a key player offering value-added distribution of automatic identification and data capture/point-of-sale (AIDC/POS), barcode and wireless products, as well as enterprise mobility solutions, which generated approximately $72 million in revenues in 2003. Terms of the cash transaction, which is scheduled to close on July 30, were not disclosed.
Ingram Micro will purchase substantially all of the assets and assume certain liabilities of Nimax. Ingram Micro also plans to hire a majority of its employees. Nimax will operate as a separate division of Ingram Micro Inc. and will be led by current Nimax Chief Executive Officer Steve Hsieh, as the vice president and general manager, AIDC division. Hsieh will report to interim Ingram Micro North America President Keith Bradley. The division will leverage Ingram Micro's global reach, broad customer base and established vertical market solutions, marketing engine, back-office resources and logistics capabilities to initially serve the U.S. and Latin America markets with growth opportunities globally.
As a result of the purchase and other synergies associated with its acquisition of Nimax, Ingram Micro will gain immediate entry into a high-growth adjacent market, expand upon its enterprise mobility offering and bring new partnership opportunities to both its manufacturer and solution provider customers. Nimax customers will benefit from the acquisition by gaining access to a larger credit capacity, added training, marketing and business development resources, world-class logistics and access to one-stop shopping for technology solutions. Manufacturers will have access to a global footprint, a broad customer base, a high-value marketing engine and business development resources serving key vertical markets.
"Enterprise mobility and the AIDC/POS market is poised for high growth and has higher margin potential than most IT products," said Kevin Murai, president, Ingram Micro Inc. "Ingram Micro has the established technology and vertical market solution sets, relationships and resources, and Nimax has the expertise in barcoding and wireless solutions. Together, we're creating a competitive advantage in target growth markets. This move extends Ingram Micro's strategy to deliver complete technology solutions that are highly marketable by solution providers and manufacturers."
Enterprise mobility encompasses not only AIDC/POS, but wireless networking, hardware and software solutions. In a press release dated October 21, 2003, leading global technology research and analysis firm, Gartner, predicts that by 2007, more than 50 percent of enterprises with more than 1,000 employees will make use of at least five wireless networking technologies. In addition, independent market research firm Venture Development Corp. (VDC), predicts the $6 billion-plus AIDC/POS hardware market will grow an average of 6 percent in the Americas, nearly 7 percent for Europe and more than 12 percent for Asia-Pacific by the year 2007. And, a greater percentage of the current business is expected to flow through the IT channel. In the Americas, this growth -- targeted in markets such as retail, wholesale distribution, transportation and logistics, manufacturing, healthcare, security and the government sector -- is being driven by a number of trends:
* Regulations: Pending Food and Drug Administration (FDA) and HIPAA
regulations are sparking AIDC investments in healthcare.
* Device mobility: Device mobility is a leading purchase criterion for
businesses looking to increase efficiency, reduce labor costs and
improve administrative expenses.
* Industry standardization: Sunrise 2005 is bolstering upgrade and
replacement shipments of POS scanners in North America as retailers
improve systems to handle 13-digit codes.
* New technologies: Dual-purpose RFID/barcode scanner solutions are
increasingly being viewed as complimentary identification solutions,
and other cross-technology product development is serving as a means
of competitive differentiation.
* Complex solution integration: AIDC/POS technology solutions require a
higher degree of complex technical specialization to adapt to vertical
markets and specific business types.
"We see opportunities in every region where we have operations, especially where mobility usage is high and the potential growth in consumer purchases is great. Most geographic and enterprise markets are barely penetrated with these technology solutions," Murai explained.
Creating High-Value and Expanded Reach for Channel Partners
"We're thrilled to be able to continue providing our customers and manufacturer partners with the same high-touch service," said Hsieh. "We plan to further enhance customer service by adding the convenience of a one-stop shop for technology solutions of all types, superior order fulfillment and management, as well as a larger credit capacity and financing alternatives to fuel growth.
"Ingram Micro will generate partnership opportunities among Nimax and Ingram Micro solution provider customers by creating a Target Solution around AIDC/POS and a Technology Practice Group. Through these new programs, Ingram Micro's Service Network and established customer communities, Nimax customers and vendors will have access to expand their business reach with Ingram Micro's solution providers focusing on technologies, such as mobility and networking, as well as those already established in the high-growth vertical markets. The combined marketing expertise and expanded customer reach will build incremental market share opportunities for manufacturers and suppliers serving the AIDC/POS market and enterprise mobility solutions.
"We see a great deal of potential for Ingram Micro and Nimax to grow our business globally and develop incremental market share opportunities," said Jan Burton, vice president, worldwide channels, Symbol Technologies. "We're pleased that Nimax will remain a separate division, yet leverage the financial and operational resources and expertise of a leading broadline distributor like Ingram Micro."
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 but not limited to statements about future sales levels, margins, cost savings, operating efficiencies, and profitability, are based on current management expectations that involve certain risks which if realized, in whole or in part, could have a material adverse effect on Ingram Micro's business, financial condition and results of operations, including, without limitation: (1) intense competition, regionally and internationally, including competition from alternative business models, such as manufacturer-to-end-user selling, which may lead to reduced prices, lower sales or reduced sales growth, lower gross margins, extended payment terms with customers, increased capital investment and interest costs, bad debt risks and product supply shortages; (2) termination of a supply or services agreement with a major supplier or customer or a significant change in supplier terms or conditions of sale; (3) failure of information processing or data security systems could result in significant disruption of business and/or additional costs to Ingram Micro; (4) worsening economic conditions (particularly in purchases of technology products) and failure to adjust costs in a timely fashion in response to a sudden decrease in demand; (5) losses resulting from significant credit exposure to reseller customers and negative trends in their businesses; (6) delays or failure to achieve the benefits of process or organizational changes we may implement in the business; (7) disruptions in business operations due to reorganization activities; (8) rapid product improvement and technological change and resulting obsolescence risks; (9) possible disruption in commercial activities caused by terrorist activity or armed conflict, including changes in logistics and security arrangements as a result thereof, and reduced customer demand; (10) dependence on key individuals and inability to retain personnel; (11) reductions in credit ratings and/or unavailability of adequate capital; (12) interest rate and foreign currency fluctuations; (13) adverse impact of governmental controls and actions or political or economic instability which could adversely affect foreign operations; (14) failure to attract new sources of business from expansion of products or services or entry into new markets; (15) inability to manage future adverse industry trends; (16) difficulties and risks associated with integrating operations and personnel in acquisitions; (17) future periodic assessments required by current or new accounting standards which may result in additional charges; and (18) dependence on independent shipping companies.
Ingram Micro has instituted in the past and continues to institute changes to its strategies, operations and processes to address these risk factors and 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 Exhibit 99.01 of Ingram Micro's Annual Report on Form 10-K for the year ended January 3, 2004; other risks or uncertainties may be detailed from time to time in Ingram Micro's future SEC filings. Ingram Micro disclaims any duty to update any forward-looking statements.
About Nimax, Inc.
Nimax, Inc. is a leading multinational distributor of bar code, point-of-sale, and wireless hardware products and enterprise mobility solutions. With four offices serving the United States and Latin America, Nimax distributes a complete line of products from the industry's top manufacturers such as DataMax, Epson, HHP, Metrologic, MMF, O'Neil, Pioneer, PSC, Sato, Symbol, Zebra. For more information, contact Nimax at (800) 876-4629 or visit the company's Web site at www.nimax.com.
About Ingram Micro Inc.
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 logistic services, technical support, financial services, and product aggregation and distribution. The company serves 100 countries and is the only global IT distributor in Asia. For more information, visit www.ingrammicro.com.
(C)2004 Ingram Micro Inc. All rights reserved. Ingram Micro and the registered Ingram Micro logo are trademarks used under license by Ingram Micro Inc.
SOURCE Ingram Micro Inc.
-0- 07/28/2004
/CONTACT: investors, Ria Marie Carlson, +1-714-382-4400,
ria.carlson@ingrammicro.com, or media, Jennifer Baier, +1-714-382-2692,
jennifer.baier@ingrammicro.com, or Marie Meoli, +1-714-382-2190,
marie.meoli@ingrammicro.com, all of Ingram Micro Inc./
/Web site: http://www.nimax.com /
/Web site: http://www.ingrammicro.com /
(IM)
CO: Ingram Micro Inc.; Nimax, Inc.
ST: California
IN: CPR TLS HRD REA
SU: TNM
BF-NT
-- LAW099 --
5318 07/28/2004 16:08 EDT http://www.prnewswire.com