Ingram Micro snaps up DBL for $96 million 13 June, 2007 By Patricia Pickett

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The agreement, valued at $96 million, will see Ingram Micro of Santa Ana, Calif., acquire certain net assets of Scottsdale, Ariz.-based DBL, which offers more than 17,000 CE products from vendors such as Philips, Samsung and Sony to independent retailers across the U.S. NXG Technology, DBL's own brand of custom audio and video installation products, is part of the purchase. The NXG brand includes two lines of audio/video cables, three lines of in-wall and indoor/outdoor speakers, as well as in-wall volume controls and A/V selectors.

According to Keith Bradley, president, Ingram Micro North America, DBL's CE wholesale catalogue and NXG Technology will help fuel Ingram's existing CE strategy and propel it to the forefront of the independent retail market. "Purchasing DBL strengthens our leadership in this space and will ultimately build cross-selling opportunities between us and our existing partner bases," he said.

Bradley noted that the purchase of DBL falls in line with Ingram's strategic growth plans. "Acquisitions play an important role within our stated strategy to optimize, grow and diversify our business," Bradley said. He said Ingram has "earned tremendous success" with the 2005 acquisition of Avad, a distributor of home technology integration solutions for custom installers in the U.S., and the 2004 purchase of Nimax, a value-added distributor of enterprise mobility solutions, automatic identification and data capture/point-of-sale (AIDC/POS), and barcode and wireless products. In February of this year, Nimax became the Ingram Micro DC/POS Division.

For its customers, the DBL purchase will turn Ingram into a one-stop shop for anything IT and CE-related, Bradley said. "Our goal is to bring more value and opportunity to our partners across the board and help eliminate the complexity of doing business in these markets." The announcement builds on other recent initiatives, including the distributor's Infrastructure Technology Solutions (ITS) Division, and the Outlet offering, both launched this month. "(These initiatives) further differentiate Ingram Micro in the market and work to drive more value and opportunity to our partners," he said.

DBL and its existing team of 350 employees, including management, will remain in Scottsdale, said Bradley. Operating as a wholly-owned subsidiary of Ingram, DBL will maintain the same brand name, business model and management structure to ease the transition for customers and vendor partners of both companies.

Bradley noted that DBL sells exclusively to the U.S. market, so Canadian value-added resellers (VARs) will not be able to buy any of its products. VARs in the U.S. that are interested in purchasing products from DBL should contact DBL's sales team.

DBL reported 2006 sales of nearly $300 million, following four years of double-digit sales growth, with gross and operating margins double those of Ingram's core distribution business.