Brightstar Acquisition To Expand Europe Presence
US-based mobile distribution and services vendor Brightstar Corporation has announced its plans to acquire UK-based 20:20 Mobile. The deal was widely expected and only delayed as a result of Japan's Softbank acquiring a 57% stake in Brightstar in October. The acquisition extends Brightstar's position in Europe and continues to expand its position globally. BMI believes the deal will benefit 20:20 Mobile customers by developing further economies of scale.
20:20 Mobile has offices in 8 countries and operations covering 18 European markets as well as one Asia office in Hong Kong. The acquisition complements Brightstar's existing footprint that covers offices in 33 countries, as well as distributing to 115 different markets. In comparison to 20:20 Mobile, Brightstar has lacked a presence in Europe. The merger serves to expand its position in key European markets. While Brightstar has a strong presence in both Asia and Latin America, more developed market consumers based in countries in Europe are more likely to demand higher end devices and require greater service levels, building a greater opportunity to build revenues.
20:20 Mobile is reported to have an annual turnover of GBP1bn (US$1.646bn), which is a sizeable addition to Brightstar's US$6.3bn consolidated revenue in 2012. The addition of financial input from Softbank puts Brightstar in a strong position to compete with competitors Ingram Micro and Tessco Technologies.