Greenville-based technology distribution firm ScanSource Inc. announced the $60 million acquisition through a subsidiary, ScanSource Brazil, of Brazilian value-added distribution firm, Network1, Intersmart Comércio Importação Exportação de Equipamentos Eletrônicos S.A.
ScanSource is an international distributor of specialty technology products focusing on point-of-sale, barcode, communications and physical security solutions. ScanSource was trading at $38.76 per share after 4 p.m., or 88 cents above previous close, on the Nasdaq under the ticker symbol SCSC.
The acquisition will include Network1’s operations throughout the continent, including Brazil, Mexico, Colombia, Chile and Peru. Network1 has over 60 vendors, 8,000 customers and nearly 400 employees. Network 1 reported net sales of approximately $306 million during calendar 2014, and is the largest company that ScanSource has acquired, according to a news release.
The acquisition will build on the Greenville company’s point-of-sale and barcode business in Brazil, but will also expand its geographic reach by adding locations in three Brazilian states.
The acquisition connects resellers to industry vendors, including Avaya, Axis, Checkpoint, Dell, Extreme, F5, HP, Juniper, Polycom, Microsoft, Riverbed and Schneider-Electric.
The all-cash transaction includes an initial purchase price payment and a fixed amount of assumed net debt for an initial purchase price of approximately $60 million, plus earn-out payments based on EBITDA over the next four years. The projected total purchase price for Network1 is estimated to be approximately $121 million.
