ScanSource Acquires MicroAge to Pursue Growth Strategy
ScanSource Inc. (NASDAQ:SCSC) has completed its acquisition of MicroAge, a full-service IT solutions integrator with over five decades of enterprise support experience. The all-cash deal valued at $220.5 million was financed through ScanSource's existing credit facility and is expected to be accretive to gross profit margin, adjusted EBITDA margin, non-GAAP EPS in the first year post-acquisition. The acquisition expands ScanSource’s capabilities into higher-margin IT solutions such as cloud computing, cybersecurity, data centers, and AI. This move follows strong fiscal 2026 fourth-quarter results where net sales grew by 17.3% to $953.1 million with non-GAAP diluted EPS rising 43.1%. However, the deal introduces financial risks due to increased leverage from borrowings used for financing. Institutional interest in ScanSource has slightly risen as evidenced by an increase in hedge fund holdings and a short-interest level of 4.47%. BlackRock remains the largest institutional investor with nearly 20% ownership.
Tickers: $SCSC
Topics: acquisition debt financing growth strategy IT solutions