Ingram Micro IPO Overview

Ingram Micro (INGM)
Shares: 18.6mm
Range: $20 – $23
Lead underwriters: Morgan Stanley, Goldman Sachs, and J.P. Morgan
Exchange: NYSE

Trade Date: 10/24/2024

Ingram Micro is one of the largest global IT solutions providers, offering a broad portfolio of products and services that support technology distribution and cloud solutions. With operations in 57 countries and 134 logistics and service centers worldwide, Ingram Micro partners with over 1,500 vendors and serves more than 161,000 customers. These customers include value-added resellers, system integrators, telecommunications companies, and managed service providers.
Ingram Micro specializes in helping businesses streamline global sales channels and optimize technology deployment, particularly through its CloudBlue digital commerce platform and Ingram Micro Cloud Marketplace, which hosts over 200 cloud solutions and manages 36 million seats for various cloud services.

Use of Proceeds and Selling Shareholders

Ingram Micro plans to utilize the estimated net proceeds of $227.6 million (assuming a midpoint offering price of $21.50 per share) to pay down a portion of its Term Loan Credit Facility. They do not anticipate receiving proceeds from shares sold by the selling stockholder

Solutions.

The selling shareholder in this offering is Imola JV Holdings, L.P., an investment vehicle controlled by Platinum Equity.

• Imola JV Holdings, L.P. is offering 7,000,000 shares of Ingram Micro’s common stock.
• Additionally, the underwriters have been granted an option to purchase up to 2,790,000 additional shares from the selling shareholder to cover over-allotments, if any sellers fully exercise this option, Imola JV Holdings’ ownership would reduce accordingly, but it would still retain significant control over Ingram Micro post-offering.

Ingram Micro provides a diverse range of technology products and services, including:

• Client and Endpoint Solutions: These include desktop PCs, notebooks, tablets, printers, and components like hard drives and motherboards.
• Advanced Solutions: Focusing on enterprise-grade hardware and software, such as servers, networking equipment, cybersecurity tools, virtualization, and hybrid cloud solutions.
• Cloud Services: Providing infrastructure-as-a-service, platform-as-a-service, and software-as-a-service offerings from vendors such as Microsoft, Amazon Web Services, Cisco, and VMware.
• Sustainability and Reverse Logistics: Through their IT Asset Disposition (ITAD) and Reverse Logistics services, Ingram Micro aids in recycling, refurbishing, and reselling technology, supporting the circular economy.

Largest Customers
Ingram Micro partners with key global technology vendors, including Apple, HP, Cisco, Dell Technologies, Microsoft, and Lenovo. These partnerships account for significant portions of its sales, with Apple alone responsible for 15-16% of consolidated net sales over the past few fiscal periods. Their extensive global reach and ability to handle over 850 million units of technology products annually positions them as a key player in the technology distribution landscape.

Platinum Equity Acquisition
In 2020, Platinum Equity, a global investment firm, formed Ingram Micro Holding Corporation as part of its plan to acquire Ingram Micro. On July 2, 2021, through its investment vehicle Imola Acquisition Corporation, Platinum Equity completed the acquisition of Ingram Micro from affiliates of HNA Technology Co., Ltd., for approximately $7.2 billion. The acquisition involved substantial financing arrangements, including:

• A $500 million ABL Term Loan Facility and a $3.5 billion ABL Revolving Credit Facility.
• A $2 billion Term Loan Credit Facility.
• The issuance of $2 billion in Senior Secured Notes due in 2029.

In connection with the acquisition, Ingram Micro underwent a series of mergers, collectively known as the Imola Mergers, which led to Ingram Micro becoming the surviving entity. This acquisition provided Platinum Equity control of one of the world's leading technology distribution companies.

This acquisition marks a significant chapter in Ingram Micro's history, as it leverages Platinum Equity's resources to expand its market presence and enhance its technological solutions portfolio.