ScanSource has entered into a definitive agreement to acquire MicroAge for $220.5 million in cash, expanding its capabilities across cloud, cybersecurity, data center infrastructure, artificial intelligence and managed IT services.
MicroAge is an IT solutions integrator, managed services provider and digital transformation company serving approximately 2,400 customers across the U.S.
The company has more than 200 employees and provides technology consulting, implementation, security, managed services and other IT capabilities.
ScanSource believes the acquisition will expand its addressable market while adding higher-margin services and increasing its exposure to several strategic technology categories.
MicroAge maintains partnerships with technology providers including Microsoft, Dell, Sophos, HPE, CrowdStrike and VMware.
Its team includes specialized solutions architects with certifications across multiple technology platforms.
The company’s professional services and managed services capabilities can also be made available to ScanSource channel partners, potentially giving those partners additional ways to expand their own service offerings.
ScanSource expects MicroAge to contribute to both revenue growth and margin expansion.
Under the agreement, ScanSource will pay $220.5 million in cash at closing.
The company expects to finance the transaction using borrowings under its existing credit facility.
ScanSource expects the acquisition to be accretive to gross profit margin, adjusted EBITDA margin and non-GAAP earnings per share during the first year following completion.
The transaction is also expected to be free cash flow positive for ScanSource.
MicroAge’s services-led model adds a more direct view into end-user technology requirements, which ScanSource believes can complement its existing role as a technology distributor serving channel partners.
ScanSource distributes hardware, software-as-a-service products, connectivity and cloud services, helping partners assemble technology solutions for their customers.
The MicroAge acquisition adds deeper implementation and managed services capabilities to that platform.
MicroAge has operated for approximately 50 years and has developed expertise spanning cybersecurity, data intelligence, technology implementations and managed IT services.
The company has also been recognized across several CRN industry rankings, including the Solution Provider 500, MSP 500, Tech Elite 250 and Fast Growth 150.
ScanSource believes the two organizations also share similar cultures centered on long-term customer relationships and employee experience.
The transaction is expected to close during the quarter ending September 30, 2026, subject to regulatory approval and other customary closing conditions.
KEY QUOTES:
“MicroAge is an amazing, legendary company that has had tremendous brand recognition for more than 50 years. The acquisition expands ScanSource’s total addressable market, adds new services capabilities, and provides greater visibility into end-user needs.”
Mike Baur, Chair And CEO Of ScanSource
“We are proud of what the MicroAge team has built, and we see ScanSource as the right partner for our next phase of growth. With ScanSource’s greater reach, resources, and channel expertise, we will be better positioned to scale our services-led model in high-growth markets, while continuing to deliver the customer-first experience that has defined MicroAge.”
Larry Gentry, CEO Of MicroAge
