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Brightpoint and Dangaard Telecom to Merge TMCnet Contributing Editor Brightpoint, a U.S.-based distributor of wireless products, is reportedly ready to acquire Dangaard Telecom, a Europe-based distributor of wireless products, for about $300 million in a cash/stock transaction.
The merger, which is expected to be finalized by the end of second quarter of 2007, will enable both companies to expand their advanced wireless products and better serve their business partners and customers. It is forecast to result in revenue growth for both companies, which have a combined 25,000 customers worldwide. Brightpoint and Dangaard distributed more than 64 million mobile phones in 2006, representing about six percent of all the handsets sold worldwide. Robert Laikin, Brightpoint’s chairman and CEO, expressed optimism about the merger. “This transaction will join together two of the most prominent players in the wireless handset distribution and logistics industry to create the true global leader,” he said in a published report. “Our companies complement each other perfectly in terms of geography, service offerings and shared commitment to operational excellence. Our vendors, customers, employees and shareholders will all benefit from the global platform created by this transaction.” Brightpoint shares climbed to $11.62, gaining $1.34 per share, immediately after the merger was announced. Brightpoint made news in December 2006 when it acquired assets of CellStar, including its Miami-based Latin American business and U.S. operation, for $88 million in cash. The acquisition was expected to extend Brightpoint’s growth and market reach in Latin America. The company also acquired Trio Technologies, a Dallas-based supplier of bundled enterprise wireless solution for system integrators, in October 2006. This acquisition allowed Brightpoint to focus on its strategy in distributing mobile devices and services. Brightpoint’s acquisitions have thus far complemented its mission to serve its customers and suppliers around the world by providing the highest quality products and services. -------- Beverly Maniago is a contributing editor for TMCnet. To see more of her articles, please visit her columnist page. |