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Ingram Micro ( IM ) stock soared Thursday after China-based Tianjin Tianhai Investment said that it had reached an agreement to pay $38.90 a share, or $6 billion, for the Irvine, Calif.-based information technology company. Ingram Micro is a leading distributor of technology products and provider of technology services, with 2015 revenue near $44 billion. Its competitors include Arrow Electronics ( ARW ), Tech Data ( TECD ) and Synnex ( SNX ). The acquisition was announced after the market close Wednesday. Ingram Micro stock vaulted up 22.6% to close at 36.34 in the stock market today . Arrow Technologies stock closed up 1.9%, while Tech Data lifted 3.7% and Synnex 2.3%. Upon close of the merger, Ingram Micro says, it will become a subsidiary of HNA Group, a China-based company described as a leader in aviation, tourism and logistics. HNA is also the largest stockholder of Tianjin Tianhai, which is a shipping, logistics and financing company. Both Ingram Micro’s and Tianjin Tianhai’s boards have unanimously approved the transaction. The offering price was a 39% premium over the average closing price for Ingram Micro’s shares over the past month. The deal is expected to close in the second half of this year. Ingram Micro says that it will suspend its quarterly dividend payment and its share repurchase program prior to the closing of the transaction. After the deal was announced, Needham analyst David Rold changed his rating on Ingram Micro to hold from buy. “While difficult to tell what HNA’s ultimate intentions for the business are, we do not expect much change in near-term competitive landscape,” Rold wrote in a research note. “Our initial checks suggest business as usual for the time being.” Moody’s Investors Service placed the ratings of Ingram Micro on review for downgrade following the announcement. “The companies did not announce whether Ingram’s existing debt will be refinanced or assumed in connection with the closing of the acquisition,” Moody’s wrote in a research note. “The rating review reflects the uncertainty related to the post-acquisition capital structure, liquidity position and financial policies. “Moody’s will also assess Tianjin Tianhai’s and HNA’s financial positions and whether Ingram Micro will need to upstream dividends to help pay for the acquisition or for other corporate purposes.” While some potential sales of U.S. tech firms to Chinese buyers have raised regulatory concerns, the sale of a tech distributor such as Ingram Micro might not fall into that camp. U.S. chipmaker Fairchild Semiconductor ( FCS ) this week accepted a buyout bid from U.S. rival ON Semiconductor ( ON ) rather than a higher offer from Chinese investors, fearing a long and tricky regulatory review. An unsolicited bid for Micron ( MU ) by China’s Tsinghua Unigroup has also withered because of regulatory concerns. Image provided by Shutterstock.

Ingram Micro ( IM ) stock soared Thursday after China-based Tianjin Tianhai Investment said that it had reached an agreement to pay $38.90 a share, or $6 billion, for the Irvine, Calif.-based information technology company. Ingram Micro is a leading distributor of technology products and provider of technology services, with 2015 revenue near $44 billion. Its competitors include Arrow Electronics ( ARW ), Tech Data ( TECD ) and Synnex ( SNX ). The acquisition was announced after the market close Wednesday. Ingram Micro stock was up 21%, near 36, in midday trading on the stock market today . Arrow Technologies stock was up 3%, near 57.50, midday Thursday, while Tech Data stock was up 4% and Synnex up 2.5%. Upon close of the merger, Ingram Micro says, it will become a subsidiary of HNA Group, a China-based company described as a leader in aviation, tourism and logistics. HNA is also the largest stockholder of Tianjin Tianhai, which is a shipping, logistics and financing company. Both Ingram Micro’s and Tianjin Tianhai’s boards have unanimously approved the transaction. The offering price was a 39% premium over the average closing price for Ingram Micro’s shares over the past month. The deal is expected to close in the second half of this year. Ingram Micro says that it will suspend its quarterly dividend payment and its share repurchase program prior to the closing of the transaction. After the deal was announced, Needham analyst David Rold changed his rating on Ingram Micro to hold from buy. “While difficult to tell what HNA’s ultimate intentions for the business are, we do not expect much change in near-term competitive landscape,” Rold wrote in a research note. “Our initial checks suggest business as usual for the time being.” Moody’s Investors Service placed the ratings of Ingram Micro on review for downgrade following the announcement. “The companies did not announce whether Ingram’s existing debt will be refinanced or assumed in connection with the closing of the acquisition,” Moody’s wrote in a research note. “The rating review reflects the uncertainty related to the post-acquisition capital structure, liquidity position and financial policies. “Moody’s will also assess Tianjin Tianhai’s and HNA’s financial positions and whether Ingram Micro will need to upstream dividends to help pay for the acquisition or for other corporate purposes.” While some potential sales of U.S. tech firms to Chinese buyers have raised regulatory concerns, the sale of a tech distributor such as Ingram Micro might not fall into that camp. U.S. chipmaker Fairchild Semiconductor ( FCS ) this week accepted a buyout bid from U.S. rival ON Semiconductor ( ON ) rather than a higher offer from Chinese investors, fearing a long and tricky regulatory review. An unsolicited bid for Micron ( MU ) by China’s Tsinghua Unigroup has also withered because of regulatory concerns. Image provided by Shutterstock.