Information technology products distributor ScanSource has agreed to acquire IT solutions integrator MicroAge for $220.5 million in cash, expanding ScanSource’s capabilities in managed services and several high-growth technology markets.

Greenville, SC-based ScanSource announced the deal Aug. 20, saying MicroAge will broaden its reach across cloud, cybersecurity, data center and artificial intelligence solutions. MicroAge operates as an IT solutions integrator, managed services provider and digital transformation partner, serving approximately 2,400 U.S. clients with more than 200 employees.

The company also has partnerships with technology suppliers including Microsoft, Dell, Sophos, HPE, CrowdStrike and VMware, while its services cover cybersecurity, data intelligence, technology implementation and managed IT.

“MicroAge is an amazing, legendary company that has had tremendous brand recognition for more than 50 years,” ScanSource Chair and CEO Mike Baur said. “The acquisition expands ScanSource’s total addressable market, adds new services capabilities, and provides greater visibility into end-user needs.”

ScanSource will fund the $220.5 million purchase through borrowings under its existing credit facility. The company expects the transaction to close during the quarter ending Sept. 30, subject to regulatory approval and customary closing conditions. ScanSource said it expects MicroAge to be accretive to gross profit margin and adjusted EBITDA margin during the first year after closing and to be free cash flow positive.

ScanSource’s products include mobile point-of-sale and payments computers, barcode scanners, IP surveillance cameras, networking and communications products and cloud infrastructure SaaS offerings.

ScanSource 4Q, Fiscal 2026 Results

The acquisition announcement came alongside ScanSource’s fiscal 2026 fourth-quarter and full-year results.

For the quarter ended June 30, net sales increased 17.3% year over year to $953.1 million, while gross profit climbed 14% to $119.8 million. Operating income increased 18.5% to $31.7 million and net income rose 27.5% to $25.6 million. Specialty Technology Solutions sales increased 17.6% to $927.2 million, while Intelisys & Advisory sales increased 7.2% to $25.9 million.

For the full fiscal year, ScanSource posted net sales of $3.23 billion, up 6.1%, while gross profit increased 7% to $437.4 million. Operating income increased 15.8% to $98.6 million and net income increased 10.2% to $78.9 million. Recurring revenue grew 10.6% for the year.

ScanSource generated $123.1 million of operating cash flow and $113.8 million of free cash flow during fiscal 2026.

For fiscal 2027, excluding the pending MicroAge acquisition, ScanSource forecast net sales growth of 6%-10% and adjusted EBITDA of $158 million-$165 million.