Ingram Micro DC/POS Division Pursues Growth Opportunities And Expands Market Reach Through Strategic Acquisition In The UK

Ingram Micro EMEA, a division of Ingram Micro Inc. (NYSE:IM), the largest global technology distributor, today announced it has signed an agreement to purchase the assets of privately held Paradigm Distribution Ltd., a key UK player offering value-added distribution of mobile data and automatic identification and data capture/point-of-sale (AIDC/POS) technologies. Terms of the cash transaction, which is scheduled to close mid-January 2008, were not disclosed.

Paradigm Distribution serves UK and Ireland based solution providers and system integrators from its base in Didcot, Oxfordshire. Upon closing expected later this month, Paradigm Distribution will be integrated in the Ingram Micro Data Capture/POS Division that operates as a separate business focused on delivering value-added products and services. As part of the agreement Paradigm Distributions employees will transfer to Ingram Micro UK and be employed at the companys offices in Maidenhead. The new UK entity will be led by current Managing Director of Paradigm Distribution Ralph Donohue who will report to Johan Vandenbussche, Vice President Ingram Micro Pan-European Business Unit.

This announcement follows Ingram Micro EMEAs purchase in 2006 of SymTech Nordic AS, the leading Nordic AIDC/POS distributor. This second acquisition marks a small yet strategic step for Ingram Micro Data Capture/POS Division in Europe in moving beyond the Nordics and expanding geographically in the EMEA region.

This acquisition fits our global strategy of expansion and diversification in adjacent markets, said Jay Forbes, President Ingram Micro EMEA. Today we are a global distribution partner that specialises in data capture and POS technologies and delivers adjacent technologies to provide complete end-to-end solutions, services and support. This acquisition reflects our determination and commitment towards the high-margin AIDC/POS space as well as the related radio frequency identification segment. This foundation in the key UK market provides us with the ideal platform for further European growth and differentiation from our peers while offering tremendous business opportunities to vendors and customers alike.

Our Data Capture/POS Division is very successfully pursuing profitable growth and channel opportunities in the Nordics and it has been our intention all along to leverage this success. I expect that targeting the UK market will allow us to take our European AIDC/POS distribution initiative a great deal further and achieve excellent results across the region, commented Johan Vandenbussche.

As a result of the transaction, Ingram Micro UK customers will gain immediate access to a market that is poised for growth and adoption by businesses and consumers.  Paradigm Distributions customers will benefit from access to one-stop shopping for technology solutions, world-class logistics, larger credit capacity and additional training, marketing and business development resources.

While the agreement will bring IT vendors new partnership opportunities, AIDC/POS vendors will benefit from incremental market share opportunities by leveraging Ingram Micros pan-European reach, broad customer base, high-value marketing engine, back-office resources, logistics capabilities and business development resources serving key vertical markets European-wide.

Commenting on the agreement, Ralph Donohue, Managing Director Paradigm Distribution said: I strongly believe in the leverage brought by partnerships and I see this one as a great development for our company, our vendor partners and our customers. Im confident that our expertise in offering value-add AIDC/POS solutions in the UK coupled with the capabilities of the worlds largest technology distributor will result in an even greater degree of professionalism both for our partners and our customers. Were very happy to join Ingram Micro and look forward to developing our business together.

We are very pleased to see Ingram Micro join forces with Paradigm Distribution as it will further support our worldwide growth plans," said Jeremy Butt, VP WW Channels, Motorola EMb, a leading vendor in Enterprise Mobility. "Our experience with Ingram Micro DC/POS Division in the European Nordic region as well as in the US, Latin America and Asia Pacific, makes us fully confident that our reseller partners in the UK, Ireland and beyond will greatly benefit from this partnership."


About Ingram Micro Data Capture/POS Division

The Ingram Micro Data Capture/POS Division is a leading value-added distributor of auto ID/data capture (AIDC), point-of-sale (POS), radio frequency identification (RFID) and wireless solution products and services. In addition to these technologies, the division also offers partners access to the complete suite of Ingram Micro products and services.  With offices and distribution centers across North America, Latin America, Europe and Asia, the Ingram Micro Data Capture/POS division delivers a comprehensive portfolio of products and services to technology integrators.

About Ingram Micro Inc.

Ingram Micro Inc. is the worlds largest technology distributor. 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 services, technical support, financial services, and product aggregation and distribution. The company generated $31.4 billion in revenues in 2006, ranking 70th on the Fortune-500.  It serves 150 countries and is the only broadline IT distributor with operations in Asia.

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