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Scansource Announces Execution Of Letter Of Intent To Acquire Imago Group Plc Accretive To Eps And Roic Forecasted In First Year After Closing

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Title: SCANSOURCE ANNOUNCES EXECUTION OF LETTER OF INTENT TO ACQUIRE IMAGO GROUP PLC Accretive to EPS and ROIC forecasted in first year after closing
Date: 8/21/2014
Industry: Computer Peripherals     Sector: Technology

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Exhibit 99.1

 

 

For Immediate Release

  

Contact:

  

Media : Melissa Andrews

August 21, 2014

  

  

864.286.4425

melissa.andrews@scansource.com

  

  

Investors : Mary Gentry

  

  

864.286.4892

mary.gentry@scansource.com

SCANSOURCE ANNOUNCES EXECUTION OF LETTER OF INTENT TO ACQUIRE

IMAGO GROUP PLC

Accretive to EPS and ROIC forecasted in first year after closing

GREENVILLE, SC – ScanSource, Inc. (NASDAQ: SCSC), the leading international value-added distributor of specialty technology products, today announced the execution of a non-binding letter of intent to acquire Imago Group plc, Europe’s leading value-added distributor of video and voice communications equipment and services (“Imago”). Pursuant to the letter of intent, ScanSource will be acquiring Imago’s operations in the United Kingdom, France, and their recently acquired business in Germany.

Imago sales for fiscal year ended July 31, 2014 are estimated to total approximately GBP 50 million (approximately US$83 million) with operating margins consistent with ScanSource’s Communications business. The all-cash transaction as currently negotiated includes an initial purchase price of approximately GBP 24.5 million (approximately US$41 million), 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 United Kingdom, 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 carries a strong line of vendor partners, including Polycom, Barco, Samsung, and NEC. In 2013, Imago was named by Polycom as its Distributor of the Year in EMEA.


“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, ScanSource, Inc. “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.”

“I am incredibly excited about joining the ScanSource team,” said Mr. Vickerage. “O


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