Value-added distributor ScanSource is planning to acquire Imago Group plc, a value-added distributor of video and voice communications equipment and services in Europe, for $41 million. ScanSource will be acquiring Imago’s operations in the United Kingdom, France, and its recently acquired business in Germany.
Imago sales for fiscal year ended July 31 are estimated to total approximately $83 million, with operating margins consistent with ScanSource’s communications business. The all-cash transaction includes the initial purchase price plus earnout payments over the next two years. The acquisition as contemplated in the letter of intent is expected to be accretive to earnings per share and ROIC in the first year after closing, excluding one-time acquisition costs.
Founded in 1991 and headquartered in the United Kingdom, Imago has nearly 120 employees in the UK, France and Germany. In June 2014, Imago acquired VITEC Distribution, a videoconferencing distributor in Germany. Imago provides a full suite of value-added services in video, voice and data, including project initiation, implementation and training, as well as a strategy in assisting resellers with implementing cloud solutions via public, private or hybrid means. Imago’s vendor partners include Polycom, Barco, Samsung and NEC.
“The proposed acquisition of Imago represents the next step in ScanSource’s strategy to be the leading value-added distributor of video, voice and data solutions for resellers in Europe,” said Mike Baur, CEO at ScanSource. “Ian Vickerage, Imago founder and managing director, has grown his business into the best value-added distributor of video and voice solutions in Europe. He has agreed in the letter of intent to remain as managing director of the company and will continue to lead the talented management team he has built at Imago.”
It is expected that Imago would operate as a separate business unit as part of the ScanSource video, voice and data strategy in Europe.
“I am incredibly excited about joining the ScanSource team,” said Vickerage. “Our resellers will have access to an expanded portfolio of solutions from ScanSource and Imago, while our vendors will benefit from the enhanced channel opportunities available to them.”