Ingram Micro, backed by private equity firm Platinum Equity, continues to fine-tune its business focus and revenue mix worldwide. The latest move involves selling Commerce & Lifecycle Services (CLS) assets to CMA CGM Group. The deal has an enterprise value of US$3.0 billion.
This is technology M&A deal number 768 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Ingram Micro Sells CLS to CMA CGM Group: Deal Details
So what exactly is CMA CGM Group acquiring from Ingram Micro? The acquired CLS business involves:
- E-commerce contract logistics and omni-channel fulfillment;
- Shipwire, a cloud-based logistics technology platform;
- associated revenues of roughly US$1.7 billion in 2021;
- 11,500 staff members worldwide across 59 warehouses;
- technology forward logistics businesses in North America, Europe, Latin America and Asia-Pacific; and
- Ingram Micro Executive VP Michiel Alting transitioning to the buyer and continuing to lead the CLS business.
The remaining portions of the existing CLS business will be retained by Ingram Micro, the companies indicated.
Ingram Micro Business Evolution: Under Platinum Equity’s ownership since July 2021, Ingram Micro has gained more financial freedom and business flexibility to acquire -- and perhaps shed -- some businesses worldwide, ChannelE2E believes. Example moves include:
- December 2021: Acquiring BRLink — a Top 250 Public Cloud MSP that works closely with Amazon Web Services.
- October 2021: Acquiring CloudLogic, which focuses on IT Strategy, Cloud Enablement, Cloud Transformation, Cloud Cost Optimization, and Migration services.
Ingram Micro Sells CLS to CMA CGM Group: Executive Perspectives
In a prepared statement about the deal, Rodolphe Saadé, chairman and CEO of the CMA CGM Group, said:
"The acquisition of Ingram Micro CLS is strategic for the CMA CGM Group. After completing its turnaround this year, our subsidiary CEVA Logistics will accelerate its development and join the world's Top 4 in contract logistics. Its position will be significantly strengthened in the U.S. and European markets, enhancing its ability to seize the opportunities offered by the boom of eCommerce. Committed to providing leading end-to-end supply chain solutions, the CMA CGM Group will continue its development, relying on two solid pillars, shipping and logistics, with a world leadership position in both sectors."
Added Alain Monié, CEO of Ingram Micro:
"CMA CGM Group is committed to investing in the technology, capabilities, and talent to rapidly become one of the world's largest players in the global ecommerce space. With a mission of enabling businesses to grow and communities to thrive, I am confident this is an excellent fit for our dynamic, innovative, and solutions oriented CLS team."
Concluded Platinum Equity Partner Jacob Kotzubei and Platinum Equity Managing Director Matthew Louie:
"We have great respect for CMA CGM Group and believe CLS is an excellent fit with CEVA Logistics. This move allows Ingram Micro to focus on the growth and expansion of its core technology distribution and cloud services capabilities. We will continue to invest in growing those businesses organically and through prospective acquisitions."
