Broadliner Ingram Micro has entered into a definitive agreement to acquire a Central and Eastern Europe (CEE) Division of Russian multispecialist RRC for an undisclosed amount. RRC CEE Division with its headquarters in Poland, Warsaw, brings a comprehensive suite of service offerings including logistics, education and technical and marketing support, as well as a portfolio of higher value solutions focused on networking, security, IT infrastructure and auto identification products and services from major vendors, including Cisco, IBM, EMC, Zebra and Avaya. It ought help Ingram create or strengthen local Value and Specialty divisions in Albania, Croatia, Czech Republic, Hungary, Macedonia, Poland, Romania, Serbia and Slovenia. Until now, Ingram Micro was present physically in the region only in Hungary, both as a broadliner and as a VAD (where RRC team will have to merge with the existing Ingram team). In all other countries, this means the official opening of local Ingram sales office, often for the first time in the region. The acquisition is expected to contribute more than €225 million in annual revenue. RRC CEE leadership team has agreed to join Ingram Micro upon closure of the transaction to assist in the integration and help lead the combined business thereafter. The transaction, which is subject to customary regulatory and other closing conditions, is expected to close in the first half of 2016.
Ingram Micro CEO Alain Monié commented, "The addition of RRC is well aligned with Ingram Micro’s global strategy to broaden our reach into higher margin, value-add and services businesses. In addition to bolstering our European portfolio of value solutions, we expect to leverage RRC's established brand in Central and Eastern Europe to increase revenue and profitability throughout this strategic territory, which has been a focus of expansion for Ingram Micro. We look forward to RRC joining Ingram Micro."
Konstantin Sidorov, RRC Group Chairman, added, "As a highly respected global brand, Ingram Micro is an ideal partner to help our CEE division expand its business and profitability throughout the region, benefiting from Ingram Micro's established infrastructure and partnerships with leading technology companies. On the other hand, the deal will allow RRC Group to rapidly increase market share in its core markets of Russia and CIS countries (Azerbaijan, Belarus, Kazakhstan, Russia and Ukraine), investing heavily into broadening of RRC product portfolio and new cloud based platform for our partners.". Following the announcement of the acquisition, Ingram Micro's Polish competitor ABC Data, which is present in Czech Republic, Hungary, Lithuania, Poland, Romania and Slovakia, announced that is was also in negociations for the acquisition of RRC CEE.