Ingram Micro (News - Alert), Inc. has signed a multi-year agreement with SquareTrade. The agreement will allow both companies to take advantage of each other’s technology to provide an upgraded protection system to customers.
According to a statement, Ingram Micro Mobility “will provide all mobile device lifecycle services and back-end supply chain operations” for SquareTrade, along with supporting its Advanced Exchange Service. In turn, SquareTrade will use the technology for all of its clients, expecting to add an additional 1 million new customers over the next five months.
"SquareTrade's award-winning customer service experience is built on reliability, transparency and trust. We make this a reality every day through the people we hire, the values we espouse and the companies with which we partner," said Steve Abernethy, president and CEO of SquareTrade. "Ingram Micro Mobility enhances the crucial back-end of our customer experience, enabling us to provide unparalleled service, which is what our customers expect from us. This collaboration takes the quality and speed of our mobile repairs -- the fastest growing sector of our business -- to a whole new level."
Although both companies were quick to announce their new agreement, they did not divulge details on how much the agreement is worth.
This announcement comes only a couple of hours after reports surfaced that Zacks, a stock and mutual fund company, announced it would be upgrading Ingram Micro’s stock from a “neutral” rating to an “outperform” rating.
Basically, this means that instead of stockbrokers expecting the stock to perform in line with expectations, they feel the stock will excel expectations and continue to skyrocket. The stock, which has been anywhere between $20 and $22 is now currently holding firm at $28.
Although no one can predict exactly where a stock might end up, Zacks’ analyst say due to Ingram Micro being one of the largest distributors of IT products, it believes that stock holders will benefit from its “improving profitability” and “synergies” from it’s recent acquisition of BrightPoint. It is unclear how the stocks will be affected with the new agreement with SquareTrade.
Edited by Rich Steeves