agreed to pay up to $200 million to buy home electronics integrator Avad.
Santa Ana, Calif.-based Ingram said buying Avad, a privately held alliance of 12 companies employing 280 people, will add to earnings this year and next.
The purchase price includes a $120 million upfront payment and earn-out payments of up to $80 million over three years. Ingram Micro won't acquire Avad's cash on hand, long-term debt or other business liabilities. Ingram Micro will fund the deal through its existing borrowing capacity and cash, and the purchase won't keep it from staying in compliance with its financing agreements.
Avad, which serves 8,000 dealers, reported sales of $200 million in 2004. Its product portfolio includes vendors such as Fujitsu, Bose, Sharp, Samsung, Niles and Lutron.
"The lines between home and office are blurring," said Ingram's Kevin Murai. "Many homes are being built or renovated with centralized electronic systems to combine data, entertainment and everyday conveniences, such as lighting and appliances. Avad's customers are on the front lines of the convergence trend, selling and installing everything from home theater systems to lighting, security and centralized controls."
Ingram closed Monday at $15.74.