Jones Stephen sold $568K of SCSC

ScanSource (SCSC) acquired MicroAge for $220.5M, expecting margin and EPS growth. Q4 net sales rose 17.3% to $953.1M, with non-GAAP EPS up 43.1% to $1.46. The deal adds debt but expands high-margin IT services. Hedge funds increased holdings, with BlackRock as the largest investor.

ScanSource (SCSC) completed a $220.5M cash acquisition of MicroAge. SCSC's Q4 saw 17.3% sales growth and 43% EPS increase. MicroAge is expected to boost margins and free cash flow. SCSC used credit facilities for the deal, doubling its debt. Q4 gross margin slipped to 12.6%. Fiscal 2027 guidance excludes MicroAge. Hedge fund ownership rose, and the stock trades at a forward P/E of 11.95.

ScanSource Inc. (SCSC) agreed to acquire MicroAge for $220.5M in cash, aiming to expand its market reach and enhance growth. The deal is expected to close in September, subject to regulatory approval. MicroAge serves 2,400 clients and offers IT solutions and managed services. ScanSource plans to fund the acquisition through its existing credit facility.

ScanSource completed its $220.5 million all-cash acquisition of MicroAge, expanding its cybersecurity and managed IT services. The deal, funded through existing credit facilities, is expected to boost margins and free cash flow. MicroAge's services complement ScanSource's distribution platform, supporting partners in complex tech environments.

Scansource Inc. (SCSC) acquired MicroAge for $220.5 million in cash. The deal is expected to boost gross profit margin, adjusted EBITDA margin, and non-GAAP EPS in the first year. SCSC shares were down 0.39% in pre-market trading at $56.02.

ScanSource (SCSC) reported Q4 results with net sales up 17.3% to $953.1M and non-GAAP EPS up 43.1% to $1.46. The company announced a $220.5M acquisition of MicroAge. Hardware demand drove growth, while Brazil saw a 21.6% sales decline. Free cash flow was $113.8M, and the company has $121M left for buybacks. Fiscal 2027 guidance assumes large tech deployments return.