Ingram Micro (IM) Inks Distribution Agreement With Awingu

Technology distribution company, Ingram Micro (NYSE:IM) inked a deal with Awingu, a developer of software to secure and simplify online workspace and enterprise mobility, for the distribution of Awingu’s mobility solution to channel partners in the U.S. The expanded service includes a cloud-based solution, which will provide users a secure and flexible network. The financial terms of the deal have not been made public.

According to the press release, “Awingu’s software aggregates all company files and applications to one, secure online workspace that can be accessed using any device with an HTML5 browser.” The distribution of the solution in the U.S. will help Ingram Micro to expand its market share and increase sales growth.

Mobility holds the key in today’s technology world. People are now looking for a secure connection between their workplace and their own device using the latest web technology. True to its commitment, Awingu strives to improve the efficiency of its mobility business by integrating people, business networks and devices via a web browser.

We believe that through this deal Ingram will expand its supply-chain solutions portfolio. On the other hand, Awingu will benefit from increased geographical presence and a vast distribution network.

Apart from this, Ingram Micro recently announced that it has expanded its distribution agreement with Dropbox Inc. Per the expanded agreement, Ingram Micro will be able to market and sell Dropbox file sharing and collaboration services in countries like Europe, Australia and New Zealand.

Ingram Micro has been signing distribution deals with a number of original equipment manufacturers, thus expanding its product portfolio. The company’s exposure to the cloud computing segment is also expected to act as a significant growth driver.

Though Ingram Micro’s high debt burden is a concern, we remain fairly optimistic about its strategic relationships with network giants such as Juniper Networks Inc. (NYSE:JNPR) , Cisco Systems, Inc. (NASDAQ:CSCO) and International Business Machines Corp. (NYSE:IBM) .

Ingram Micro carries a Zacks Rank #5 (Strong Sell).