ScanSource to Acquire MicroAge for $220.5M Cash; Q4 Sales Jump 17%
SCSC sits 69% above its 52-week low of $33.76.
Summary
ScanSource announced a $220.5M all-cash acquisition of MicroAge, a leading IT solutions integrator, alongside strong Q4 FY26 results showing 17% sales growth and 41% EPS growth.
Key Events · M&A and Partnerships · SCSC
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MicroAge Acquisition Agreement
A stock purchase agreement has been entered into to acquire MicroAge for $220.5 million in cash, payable at closing. The deal includes a $3M post-closing adjustment escrow and a $6.8M indemnification escrow.
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Strategic Expansion
MicroAge brings approximately 2,400 clients, over 200 employees, and partnerships with Microsoft, Dell, HPE, CrowdStrike, and VMware. The acquisition broadens ScanSource's reach in cloud, cybersecurity, data center, and AI.
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Q4 FY26 Earnings Beat
Net sales rose 17.3% year over year to $953.1M; GAAP diluted EPS grew 40.9% to $1.24; non-GAAP diluted EPS grew 43.1% to $1.46. Full-year free cash flow was $113.8M.
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FY27 Guidance
ScanSource guided FY27 net sales growth of 6-10% and adjusted EBITDA of $158-165 million, excluding the MicroAge acquisition. Free cash flow is expected to be at least $85 million.
Analysis · SCSC · Trade & Services
A definitive agreement has been signed to acquire MicroAge, an IT solutions integrator, for $220.5 million in cash. The transaction extends ScanSource's footprint into cloud, cybersecurity, data center, and AI, and is projected to be accretive to margins and EPS in the first year. The 8-K also discloses robust Q4 results—net sales up 17% and GAAP EPS up 41%—along with FY27 guidance that exceeds current estimates. Funding comes from the existing credit facility, and closing is anticipated in the quarter ending September 30, 2026, pending HSR approval.
At the time of this filing, SCSC was trading at $57.00 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1B. The 52-week trading range was $33.76 to $59.60. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.