ScanSource to Buy MicroAge in $220.5 Million All-Cash Deal
ScanSource said the acquisition would push it deeper into higher-margin cloud, cybersecurity, data center and AI solutions work.
ScanSource, Inc. (SCSC) agreed to acquire MicroAge for $220.5 million in an all-cash transaction.
The deal is expected to close in the quarter ending September 30, 2026, subject to regulatory approval and other customary closing conditions.
The acquisition is expected to add higher-margin technology solutions capabilities and expand ScanSource’s reach in strategic growth technologies, including cloud, cybersecurity, data center and AI. “We’re also excited about our agreement to acquire MicroAge, which we believe will accelerate growth, expand margins, and add new services capabilities,” said Mike Baur, Chair and CEO of ScanSource, Inc.
The purchase extends a run of bolt-on acquisitions ScanSource has used to shift its business mix toward services. The company’s Specialty Technology Solutions segment posted 9% net sales growth and 10% gross profit growth year-over-year in its fiscal third quarter of 2026, with gross profit outpacing sales as the company leaned on recent deals including Resourcive and Advantix. MicroAge, folded into that strategy, gives ScanSource another lever to build recurring, higher-margin revenue rather than rely on hardware distribution alone.
ScanSource ranked #875 on the Fortune 1000 and has built its distribution business around connecting channel sales partners to converging technologies across hardware, SaaS, connectivity and cloud services. The MicroAge deal fits that model by adding technology solutions capabilities the company has said it wants to scale.
The transaction adds to a three-year strategic plan under which ScanSource has targeted 5%-7% gross profit growth and a build toward 50% of gross profit from recurring revenue, alongside a mid-teens adjusted EBITDA margin goal. With free cash flow conversion already running strong enough for the company to raise its outlook and repurchase $33 million of shares in its latest quarter, ScanSource enters the MicroAge deal with balance-sheet capacity intact.