ScanSource plans to acquire master agency Intelisys Communications for $83.6 million.
With 2015 gross commissions of $120 million, Intelisys distributes services for telecom carriers, cable companies, cloud services providers and technology partners through channel partners. As such, ScanSource broadens its capabilities by entering the telecom and cloud services market with the acquisition. ScanSource VARs will gain access to Intelisys’ portfolio, as well as the tools and platforms that help partners build recurring revenue streams.
“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. “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.”
Founded in 1994 and based in Petaluma, Calif., Intelisys has approximately 120 employees, more than 130 supplier partners, and over 2,400 sales partners. The Intelisys management team will remain in place, including co-founders Rick Dellar and Rick Sheldon, and co-owner Dana Topping. Jay Bradley will continue to serve as president of Intelisys, and his senior leadership team will also remain in place. Upon completion of the transaction, Intelisys employees will join the Worldwide Communications and Services segment of ScanSource.
“Intelisys is unmatched in the master agency space, and their two-tier model is an ideal fit with our culture and way of doing business. We are entering a high-growth, recurring revenue business that is complementary to our current business and represents a compelling opportunity for our VARs,” said Mike Baur, CEO, ScanSource. “Since our founding nearly 25 years ago, ScanSource has effectively taken complex market opportunities and created avenues for customers to be successful. Acquiring Intelisys and their immense expertise and talent will be instrumental in helping our combined sales and supplier channels build on that success.”
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