Ingram in consumer electronics move

Ingram in consumer electronics move

Ingram Micro will look to launch a specialist consumer electronics division in Australia within two years, according to global CEO, Greg Spierkel.

The news comes after it reached an agreement in the US to acquire home technology integration distributor, Avad.

Due to be completed before the end of the month, the Avad deal will see Ingram pay $US120 million upfront, with earn-out payments of up to $US80 million spread over the next three years. Additional payments are possible in 2010 if extraordinary performance levels are achieved.

Avad reported sales of $US200 million last year.

Spierkel said a local acquisition would be one way to further its CE claims in the Australian market but suggested he would rather build those skills internally.

"We are talking about high-end systems for people looking to spend between $30,000 and $50,000," he said. "It's not the majority of the market, far from it, but it is a big market opportunity. Homes worth $1 million or more are a dime a dozen in my opinion. In Sydney there are thousands of homes in that range."

Consumer electronics is just one of several areas Ingram will beef up in an attempt to increase the size of its footprint in higher margin categories.

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