ScanSource (SCSC) acquires MicroAge for $220.5 million in an all-cash deal, aiming to shift towards a growth strategy and expand high-margin IT services.
ScanSource Inc. (NASDAQ:SCSC) recently completed its all-cash acquisition of MicroAge for $220.5 million, funded by ScanSource's existing credit facility. Management expects the acquisition to be accretive to the company's gross margin, adjusted EBITDA margin, and non-GAAP earnings per share in the first year post-closing, generate positive free cash flow, and expand its capabilities in high-margin IT solutions and services such as cloud, cybersecurity, data center, and AI.
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