Wireless device distributors combined in bankruptcy deal
Cell phone distributor Quality One Wireless, LLC, said Monday it has acquired $2 billion competitor Personal Communications Devices, LLC, for more than $125 million through a bankruptcy auction to expand its logistics offerings in the wholesale distribution space for wireless devices.
The deal underscores the growing convergence of distribution and logistics models for the high-tech industry.
Both companies buy wireless devices, including tablets, mobile hotspots, modems and routers, from original equipment manufacturers and then sell and distribute the products to resellers and wireless carriers, as well as providing refurbishment, warranty repair and other services.
"PCD's products and market segments are an ideal fit for our global distribution channels," John Chiorando, president and CEO of Orlando-based Q1W, said in a statement. "Acquiring PCD allowed a natural extension of our core business and will accelerate the product and market penetration strategies that benefit our global telecom customers."
PCD's service offerings include inventory management, technical testing, quality control, and forward and reverse logistics. The company is based in Hauppauge, N.Y., with facilities in Brea, Calif., and Toronto.
Four years ago, Ingram Micro Inc., the world's largest distributor of high-tech products, began to focus on providing more value-added logistics services because net margins for distribution are traditionally very low. In 2012, it acquired Brightpoint, an outsourced logistics provider specializing in the technology sector.
Last month, it bought Norcross, Ga.-based CloudBlue Technologies, which specializes in reverse logistics and electronic recycling.