ScanSource Acquires Intelisys Communications for $83.6M

Intelisys Communications is a technology services distributor of business telecommunications and cloud services.

GREENVILLE, S.C. — ScanSource, a global provider of technology products and solutions, announced on Monday that is has acquired Intelisys Communications, a technology services distributor of business telecommunications and cloud services.

The initial purchase price is approximately $83.6 million, plus earn-out payments based on earnings before interest expense, taxes, depreciation and amortization over the next four years.

According to ScanSource, Intelisys had 2015 gross commissions of $120 million. It distributes services for telecom carriers, cable companies, cloud services providers and technology providers.

Here is an excerpt from the ScanSource press release discussing the acquisition:

ScanSource broadens its capabilities by entering the telecom and cloud services market with the acquisition of Intelisys.

In the United States, small and medium-sized businesses spend an estimated $150 billion on telecom services. Approximately 10% of this market is currently served by the indirect channel, creating a large and growing addressable channel market for Intelisys and its sales partners. In addition, the market dynamics favor Intelisys’ two-tier services-based business model with an expected growth of business opportunities for the indirect channel.

With this acquisition, Intelisys’ sales partners are better positioned to capture this benefit and have the potential to grow faster than the market.

“This next transformation of the channel is clear evidence of evolving end-user needs as we begin to see the bundling of hardware and software with network and cloud,” said Craig Schlagbaum, vice president of indirect channels for Comcast Business, in a statement. “As our largest “Master Agent’ partner, Intelisys has been instrumental in helping Comcast Business build a scalable channel. With the combined strength of Intelisys and ScanSource, we expect outstanding customer and partner opportunities to result from bridging these two channels.”

Intelisys provides agents and value-added resellers with a portfolio of services, support and enablement tools to sell cloud and connectivity services.

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