Ingram Micro Inc. (IM) sealed its second distributor deal in the last two weeks. Recently, the leading distributor of information technology (IT)  entered into a pact with privately owned Acronis, a provider of solutions for data backup, recovery and security for all computing verticals. Per the terms of the agreement, Ingram Micro will market and sell Acronis’ product suites to resellers and managed service providers across the  U.S. markets.

Data volumes continue to expand today, with an ever-increasing number of devices storing and using data. Moreover demand for data has increased manifold, with both business and household users joining in. Therefore, without a proper solution for data backup, disaster recovery and security, people would be helpless in fighting malware and cyber attacks.

Ingram Micro will add Acronis’ products to its Advanced Computing Division for proper distribution activity. This fairly new division was formed in September 2010, to strengthen the company’s value chain and help its channel partners.

The division will tap the growth potential in the computing and infrastructure technology market, including enterprise software, storage and virtualization. (Refer to this blog: Ingram Micro Adds New Units). Leveraging Ingram Micro’s distribution network, Acronis’ products will be properly placed in the U.S. market, giving citizens access to the latter’s enriched portfolio for both physical and virtualized environments.

Earlier this month, BMC Software Inc. (BMC) had selected Ingram Micro as an authorized distributor to market and sell its IT solutions in the U.S. Accordingly, both Ingram Micro and BMC Software will be able to tap opportunities in the data center and cloud services market. (Refer to this blog: BMC Software Joins Ingram Micro)

We remain encouraged by the back-to-back deals, which indicate the growing demand for Ingram Micro’s services, as well as the efficiency of the newly-formed division. We are also encouraged by Ingram Micro’s fourth quarter 2010 results, which modestly beat the Zacks Consensus Estimates. However, we remain apprehensive about the weak sequential guidance and the company’s debt burden.

Currently, Ingram Micro has a Zacks #3 Rank (short-term Hold recommendation).

 
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