France's CMA CGM has expanded its supply chain reach with a deal to buy the Shipwire platform and forward logistics businesses from Ingram Micro.
The Marseilles-based liner operator said the transaction to acquire the US supply chain technology company's Commerce and Lifecycle Services division involves an enterprise value of $3bn.
The deal boosts CMA CGM's contract logistics and e-commerce capabilities, adding the Ingram Micro CLS businesses to its CEVA Logistics subsidiary.
CMA CGM chief executive Rodolphe Saade said the deal is a strategic move for the company that is part of its commitment to end-to-end supply chain solutions, with shipping and logistics as its twin pillars.
"After completing its turnaround this year, our subsidiary CEVA Logistics will accelerate its development and join the world's Top 4 in contract logistics," he said.
"Its position will be significantly strengthened in the US and European markets, enhancing its ability to seize the opportunities offered by the boom of e-commerce."
The liner operator plans to fund the acquisition, which is expected to close in the first half of next year, with its existing financial resources.
The deal's $3bn value comes amid growth in the digital technology space that has accelerated amid a supply chain crunch.
As part of the package, CMA CGM will pick up Shipwire, a cloud-based logistics and fulfilment platform. The deal will allow the e-commerce platform to reach CMA CGM's 100,000 customers.
Forward logistics
The deal also brings in Ingram Micro CLS's technology-driven forward logistics businesses in North America, Europe, Latin America and Asia-Pacific. Other elements of the CLS division will remain with Ingram Micro.
The combined businesses acquired by CMA CGM, which include 11,500 staff members and 59 warehouses, are expected to deliver $1.7bn in annual revenue this year.
Combined with CEVA Logistics, the transaction brings together 90,000 people at 1,1000 sites in 160 countries.
Ingram Micro executive vice president Michiel Alting von Geusau, who is also president of CLS, will join CMA CGM as part of the transaction.
The deal comes after California private equity firm Platinum Equity bought Ingram Micro from China's HNA Group in July.
"This move allows Ingram Micro to focus on the growth and expansion of its core technology distribution and cloud services capabilities," said Platinum Equity partner Jacob Kotzubei and managing director Matthew Louie.
"We will continue to invest in growing those businesses organically and through prospective acquisitions."
