A few days ago Ingram Micro Inc. (NYSE: IM) made an announcement that it is strengthening its North American consumer electronics division by integrating the AVAD custom installation and home automation unit into the workgroup that includes the independently run DBL Distributing.
AVAD will still be known as AVAD. The name is not going away. What Ingram is hoping is that AVAD together with DBL could work with each other to leverage best practices, market expertise and common processes. They thing you have to remember about this decision is that Ingram acquired AVAD five years ago to the day. Ingram bought AVAD, a $200 million high tech to the home distributor with 28 locations, for just $120 million. AVAD looks like a bargain today and positions Ingram well against up-and-coming consumer distributor D&H.
I think everyone in the industry has to realize that D&H is not going away. They are here to stay. They have been growing since day one in Canada.
Bringing AVAD together with DBL inside Ingram’s CE division will help them to better compete with D&H who is more nimble than the bigger broadline distributors.
There was never any real rush for Ingram to integrate AVAD until now. What makes AVAD strategic is the company’s expertise is handling large home integration technology projects. The market place is heading in that direction; lifestyle is mixing with work style.
Many employers for example are okay with their staff using their laptops for personal use because they know they will do extra work at home.
Plus with cloud computing building unstoppable momentum there will be more of a case for home tech integrators who can develop a solution that can optimize the new lifestyle-work style trend.
By officially being part of Ingram, AVAD will get the benefit of being part of much larger organization and the availability of a much bigger portfolio of products. All of DBL’s services will now be available to AVAD’s partner network.
Also by adding AVAD Ingram is now the biggest in CE and home automation in Canada and the U.S. This includes mobility products, connectivity products, and convergence products.
Combined AVAD and DBL will have a partner network of more than 40,000 in North America carrying more than 20,000 products. They will also have 23-high tech showrooms across Canada and the U.S.
With this new move, Tim Coakley will lead vendor management and marketing for Ingram’s CE division.