IT distributor, Ingram Micro, has revealed that the end date of which its acquisition by Chinese company, Tianjin Tianhai, must be completed has been extended to November 13.
The company said the extension was made pursuant to the merger agreement among Ingram Micro, Tianjin Tianhai and GCL Acquisition, and will allow for completion of the previously announced review of the transaction by the Committee on Foreign Investment in the US (CFIUS).
However, it added that Ingram Micro and Tianjin Tianhai continue to expect closing of the transaction to occur in 2016 as previously announced.
Upon completion of the transaction, Ingram Micro will become a part of HNA Group, a Hainan-based Fortune Global 500.
The company also recently went public with its second quarter worldwide financial results, which saw sales slide by four per cent to $US10.1 billion. This compares to sales of $US10.6 billion in the second quarter of 2015.
The company attributed its losses to the translation of foreign currencies, negotiating a favorable change in contract terms with some customers in
It added that recent acquisitions contributed to about two percentage points of growth to 2016 second quarter worldwide sales.
Its gross margin for 2016 second quarter increased 88 basis points year-over-year to 7.10 per cent as compared to 6.22 per cent in the 2015 second quarter.
Ingram Micro said significantly higher gross margin was the result of a focus on driving a better mix of higher value sales, including more services contribution, as well as recent acquisitions.
"As anticipated, after a slow start to the year,
"Our teams did a good job balancing revenue opportunities with profit and return on capital objectives, resulting in improved profitability for the quarter, both sequentially and year-over-year, including an 88 basis point year-over-year improvement in 2016 second quarter gross margin reflecting our continued focus on increasing our services mix."