ScanSource Inc. has closed its all-cash acquisition of MicroAge, a full-service solutions integrator with a 50-year legacy of enterprise support, in a deal valued at $220.5 million and financed through ScanSource's existing credit facility. Management expects the acquisition to be accretive to gross profit margin, adjusted EBITDA margin and non-GAAP EPS in the first year following closing, while also being free-cash-flow positive, and says it expands ScanSource's capabilities in higher-margin IT solutions and services including cloud, cybersecurity, data center and AI. The announcement follows ScanSource's fiscal 2026 fourth quarter results, in which net sales rose 17.3% to $953.1 million and non-GAAP diluted EPS of $1.46 surged 43.1% from the same period last year. The deal adds leverage because ScanSource is relying on borrowings to finance it, and management's expected margin, earnings and free-cash-flow benefits remain projections rather than realized results. Institutional data tracked by Insider Monkey shows hedge fund exposure to ScanSource rose to 20 funds by the end of the second quarter of 2026 from 16 in the previous quarter, with BlackRock the largest institutional investor at 3.84 million shares, or 19.07% of outstanding shares.
ScanSource IncScanSource closed $220.5M all-cash MicroAge acquisition expected accretive to margins, EBITDA and EPS
BlackRock IncMicroAge acquired by ScanSource for $220.5 million in all-cash deal
