ScanSource Inc. (NASDAQ: SCSC) has announced it intends to acquire AV specialist distributor Imago Group plc’s operations in the UK, France, and its recently acquired business in Germany.
The all-cash transaction as being negotiated includes an initial purchase price of approximately £24.5m, plus earnout payments over the next two years.
Founded in 1991, Berkshire-based Imago has around 120 employees in the UK, France, and Germany. Its sales for fiscal year ended July 31, 2014 are estimated to be £50m.
In June 2014, Imago acquired German videoconferencing distributor VITEC Distribution. Imago provides value-added services in video, voice and data, including project initiation, implementation and training, and assists resellers with public, private or hybrid cloud implementations. Its vendor line includes Polycom, Barco, Samsung, and NEC.
ScanSource says it expects Imago to operate as a separate business unit as part of its video, voice and data strategy in Europe. Imago founder and managing director Ian Vickerage has agreed to stay on as managing director of the company.
“I am incredibly excited about joining the ScanSource team,” comments 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 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,” adds Mike Baur, CEO, ScanSource, Inc.
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.
Vickerage would report to Mike Ferney, president, worldwide communications and services, ScanSource, Inc.
The proposed acquisition would be subject to regulatory approvals and is expected to close in the quarter ending September 30, 2014.
