ScanSource set to aquire Cloud giant Intelisys

ScanSource has announced a definitive agreement to acquire Intelisys Communications, the technology services distributor of business telecommunications and cloud services.

With 2015 gross commissions of $120 million, Intelisys provides agents and value-added resellers (VARs) with an extensive portfolio of services, support and enablement tools to sell cloud and connectivity services. The acquisition accelerates Intelisys’ ability to extend this model to the ScanSource VAR community.

ScanSource VARs will gain access to Intelisys’ robust portfolio of carefully selected, highest-quality connectivity and cloud services offerings, as well as the tools and platforms that help partners build recurring revenue streams.

The all-cash transaction which should be concluded by the end of September, includes an initial purchase price of approximately $83.6 million, plus earn-out payments based on EBITDA earnings over the next four years.

Intelisys’ net revenues, which reflect gross commissions less payments to sub-agents, are estimated to total over $34 million with a 45% to 50% estimated EBITDA margin.

Rick Sheldon, Co-Founder of Intelisys commented: "This is an exciting time for the channel as VARs and telecom agents converge. Together, we believe ScanSource and Intelisys will become the ultimate channel company as we offer an unparalleled experience in the cloud and telecom space, including fully connected solutions for our partners.\"

Related Topics

Share this story