Ingram Micro Inc.

Robbins Arroyo LLP: Acquisition of Ingram Micro Inc. (IM) by Tianjin Tianhai Investment Company, Ltd. May Not Be in Shareholders’ Best Interests

Robbins Arroyo LLP is investigating the proposed acquisition of Ingram Micro Inc. (NYSE: IM) by Tianjin Tianhai Investment Company, Ltd. (Private). On February 17, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Tianjin Tianhai will acquire Ingram Micro. Under the terms of the agreement, Ingram Micro shareholders will receive $38.90 in cash for each share of Ingram Micro common stock.

Is the Proposed Acquisition Best for Ingram Micro and Its Shareholders?

Robbins Arroyo LLP’s investigation focuses on whether the Board of Directors at Ingram Micro is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.

On October 29, 2015, Ingram Micro reported strong earnings results for its third quarter 2016. Non-GAAP operating income of $169 million was up 5% in U.S. dollars over last year. Ingram Micro grew its Cloud business by more than 100% year-over-year on a constant currency basis in the 2015 third quarter, benefiting from the continued global expansion of its cloud marketplace. The company has recently expanded into India, Singapore, and Malaysia and Ingram Micro’s automated Cloud Marketplace is now available for vendor partners and customers in 16 countries worldwide. Ingram Micro beat consensus analyst estimates for EPS Adjusted and Net Income Adjusted in two out of the last four quarters. In commenting on these results, Ingram Micro Chief Executive Officer Alain Monie remarked, “We had a great quarter, reflecting continued execution on our strategy. We drove strong operating leverage while continuing to build our capabilities in key strategic areas such as advanced solutions, lifecycle services, commerce and fulfillment solutions and cloud. Our teams remained focused on generating strong returns on capital, which resulted in expanded margins, with non-GAAP operating margin reaching the highest level for a third quarter in more than a decade, a 21% increase in non-GAAP earnings per share on a currency neutral basis versus last year and $340 million in operating cash flow for the quarter. Our focus on structurally improving our cash conversion cycle is yielding results and we now expect to generate more than $1 billion in operating cash flow for the full year, even as we deploy capital to support revenue growth in our seasonally strongest fourth quarter.”

In light of these facts, Robbins Arroyo LLP is examining Ingram Micro’s Board of Directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.

Ingram Micro shareholders have the option to file a class action lawsuit to ensure the Board of Directors obtains the best possible price for shareholders and the disclosure of material information.

Ingram Micro shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.

 

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