Ingram Micro bought European division from RRC Group
The Russian IT distributor of the RRC Group recently left Europe - the company abandoned the unit in Eastern Europe, which was absorbed by the Ingram Micro distributor. Among the main tasks of the RRC Group is the implementation of corporate data storage and transmission systems, as well as other information security solutions.
The transaction amount between the RRC Group and Ingram Micro was not disclosed. The RRC company was created in Russia in 1992, and already in 1998 the first office appeared in Warsaw, after which it entered the market of other countries of Eastern Europe and the CIS. In 2014, about 51% of the company's revenue came from the Russian market, while 45% came from the European market, and 2% from Kazakhstan and Ukraine, respectively. In 2015, the situation is similar - almost 45% of the revenue of $ 590 million came from the European division, as Vedomosti reported Founder and shareholder of RRC Group Konstantin Sidorov.
“With an Ingram Micro capitalization of RRC Group’s 5.6 annual EBITDA (Earnings before interest, taxes, depreciation and amortization), the deal could be worth about $ 50 million,” said Sergey Libin, an analyst at Raiffeisenbank.
For Ingram Micro, this deal provides an excellent opportunity to strengthen its position in Poland, Hungary, Serbia, the Czech Republic, Romania, Croatia, Slovenia, Macedonia and Albania. According to preliminary estimates, the takeover of the RRC Group will bring about $ 250 million in additional revenue in the coming year. Of course, in comparison with the income of Ingram Micro, such indicators are too insignificant - only in 2014 the company earned $ 46.48 billion with a net profit of $ 266.7 million.
Most of the funds that the RRC Group received from the transaction will be directed to business development in Russia and CIS countries. In addition to IT equipment, the company will begin to distribute cloud software from Microsoft, IBM and Cisco, and the same Ingram Micro will act as a strategic partner.
Earlier, Ingram Micro had already absorbed domestic companies - in December 2015, the company acquired the business unit Odin Service Automation from Parallels.