US-based ScanSource is set to buy Imago Group, the European distributor of video and voice communications equipment and services.
ScanSource gets Imago's operations in the United Kingdom, France, and the recently acquired business in Germany.
Imago sales for fiscal year ended July 31, 2014 are estimated to total approximately £50m with operating margins consistent with ScanSource's Communications business.
The all-cash transaction as currently negotiated includes an initial purchase price of approximately £24.5m, plus earnout payments over the next two years.
The acquisition as contemplated in the letter of intent is expected to be accretive to earnings per share and ROIC in the first year after closing, excluding one-time acquisition costs.
Founded in 1991 and headquartered in the UK, Imago has nearly 120 employees in the United Kingdom, France, and Germany. I
n June 2014, Imago acquired VITEC Distribution, a videoconferencing distributor in Germany. Imago carries vendor partners including Polycom, Barco, Samsung, and NEC.
In 2013, Imago was named by Polycom as its Distributor of the Year in EMEA.
"The proposed acquisition of Imago represents the next step in ScanSource's strategy to be a value added distributor of video, voice and data solutions for resellers in Europe," said Mike Baur, CEO, ScanSource.