Nearly a week after announcing plans to acquire a Brazilian communications distributor, Greenville-based ScanSource Inc., an international distributor of specialty technology products, has announced plans to boost its European presence with the acquisition of Imago Group plc, a value-added distributor of video and voice communications equipment and services.
Pursuant to the letter of intent, ScanSource will be acquiring Imago’s operations in the United Kingdom, France, and their recently acquired business in Germany, according to a statement released by ScanSource.
Imago sales for the fiscal year ended July 31, 2014, are estimated to total approximately GBP 50 million (approximately US$83 million). The all-cash transaction as currently negotiated includes an initial purchase price of approximately GBP 24.5 million (approximately US$41 million), plus earnout payments over the next two years.
Founded in 1991 and headquartered in the United Kingdom, Imago has nearly 120 employees in the United Kingdom, France, and Germany. In June 2014, Imago acquired VITEC Distribution, a videoconferencing distributor in Germany. Imago provides a suite of value-added services in video, voice and data, including project initiation, implementation and training, as well as a strategy in assisting resellers with implementing cloud solutions via public, private or hybrid means, according to the ScanSource statement. Imago’s vendor partners include Polycom, Barco, Samsung and NEC.
“The proposed acquisition of Imago represents the next step in ScanSource’s strategy to be the leading value-added distributor of video, voice and data solutions for resellers in Europe,” said ScanSource CEO Mike Baur. “Ian Vickerage, Imago founder and managing director, has grown his business into the best value-added distributor of video and voice solutions in Europe.”
“I am incredibly excited about joining the ScanSource team,” said Vickerage. “Our resellers will have access to an expanded portfolio of solutions from ScanSource and Imago, while our vendors will benefit from the enhanced channel opportunities available to them.”
The company expects that Imago would operate as a separate business unit as part of the ScanSource video, voice and data strategy in Europe, according to the statement. Vickerage would remain as managing director of the company, and would report to Mike Ferney, ScanSource’s president of worldwide communications and services. After completing the Imago acquisition, ScanSource would have nearly 400 employees located in more than 15 offices throughout Europe in its communications and POS and barcode business units, said the company.
The letter of intent is non-binding and the proposed acquisition is subject to the negotiation and execution of a definitive purchase agreement. In addition, the proposed acquisition would be subject to regulatory approvals and is expected to close in the quarter ending Sept. 30, 2014.
Last week, ScanSource announced plans to acquire Network1, Intersmart Comércio Importação Exportação de Equipamentos Eletrônicos S.A., a Brazilian value-added distributor of communications equipment and services. ScanSource will acquire all of Network1’s operations throughout Latin America, including Brazil, Mexico, Colombia, Chile and Peru, according to a statement released by ScanSource.
