ScanSource to Acquire MicroAge in $220.5 Million Deal
ScanSource (SCSC) will acquire MicroAge for $220.5M, adding cybersecurity, cloud, and AI services. The deal, expected to close by Sept. 30, will expand ScanSource's market and services. MicroAge serves 2,400 U.S. customers. ScanSource reported Q4 sales of $953.1M, up 17.3% YoY, with full-year sales rising 6.1% to $3.23B. The acquisition is expected to boost margins and free cash flow.
How this was made

The 30-second read
Why it matters
The deal expands ScanSource's addressable market and service portfolio, likely improving margins and earnings visibility.
Market read
The acquisition is a material M&A event for a mid‑cap distributor, with potential stock impact and sector‑wide implications.
What to watch
Financing through existing credit facilities may increase leverage, and the cash outlay could limit other strategic investments.
Background
ScanSource reported strong Q4 results with 17.3% sales growth and robust free cash flow, providing financial capacity for the acquisition.
Ticker impact
ScanSource announced an all‑cash acquisition of MicroAge for $220.5 million, a deal that will expand its services and visibility into end‑user needs.
Potential upside of 5‑8% as the market prices in expanded service revenue and margin accretion.
Deal size is material for a mid‑cap distributor, and management expects immediate margin improvement and free‑cash‑flow contribution.
Market effects
Signals continued consolidation in technology distribution toward services and recurring revenue models.
U.S. technology distribution sector may see increased M&A activity as peers seek similar service capabilities.
Highlights a broader shift in global tech supply chains toward integrated service offerings.
Counterpoint
Integration risks and potential channel conflict could delay expected synergies, weighing on the stock.
Key entities
- CompanyScanSource
Technology distributor acquiring MicroAge.
- CompanyMicroAge
IT solutions integrator and managed services provider being acquired.




