ScanSource Inc., a Greenville-based international value-added distributor of specialty technology products, 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.
The all-cash transaction includes an initial purchase price of approximately R$160 million (approximately U.S. $70 million), plus earn-out payments based on EBITDA over the next four years. The acquisition is subject to the completion of due diligence and regulatory approvals and is expected to close by the end of 2014. In the interim, business will continue as usual for both ScanSource and Network1.
Following the closing of the transaction, Rafael Paloni, Network1’s CEO, will lead ScanSource’s communications business in Latin America, according to the release.
