The value of small cap stock for Brightpoint, Inc. (NASDAQ:CELL) rose during trading on Monday, as the company benefited from news that it was being purchased by another firm operating in the sector.
Bloomberg News reported that Ingram Micro Inc., the largest distributor of technology in the world, agreed to acquire Brightpoint for roughly $840 million, including the debt that was associated with the company.
According to the news outlet, the deal would help both companies, as Brightpoint was looking to reverse negative revenues that it had reported over the last year.
The company's "offerings are highly complementary to both our logistics and distribution businesses, which will enable us to go to market with the leading portfolio of mobility device lifecycle services and solutions," Ingram Micro chief executive officer Alain Monie, said in a statement.
Reuters reported that Ingram is paying 10 times what the expected earnings for Brightpoint were going to be for 2012.
The value of Brightpoint shares rose $3.43 to $8.83 at 2:15 p.m. on July 2, an increase of 63.2 percent.