Channel partner programs, IT distribution, Mergers and Acquisitions

ScanSource Acquiring Intelisys: VARs, MSPs, Telco Agents Converge


is acquiring Intelisys -- a buyout that further converges traditional VARs, MSPs and telco agents, according to multiple sources close to the deal. An official announcement could come as soon as Monday, August 8 before U.S. markets open.

Updated 8:00am ET, August 8: ScanSource confirms Intelisys acquisition. Here's estimated deal valuation. Our original Aug. 7 report continues below.

ScanSource (NASDAQ: SCSC) is a $3 billion distributor focused on point-of-sale (POS), barcode, physical security, video, voice, data networking and emerging technologies.

Intelisys, which is privately held, is a technology services distributor focused on telecommunications, network and cloud services in the channel. Intelisys positions itself as a Master Agent that has moved aggressively in the cloud solutions market -- inking relationships with such cloud partners as Equinix and  SADA Systems. In recent months, Intelisys has been pushing hard into the European market as well.

ChannelE2E has not directly confirmed the ScanSource-Intelisys deal with each vendor. ChannelE2E reached out to both companies for comment on Sunday, Aug. 7. We will update this article with comments if/when they arrive.

ScanSource and Intelisys: Partnership Then More

ScanSource and Intelisys have partnered since around 2013. Under terms of that relationship,  ScanSource channel partners have access to Intelisys suppliers.

Once ScanSource completes the Intelisys buyout, the two businesses together intend to "create the ultimate channel company, one that seamlessly integrates technology products AND services to meet the evolving needs of customers," according to sources observing the deal.

The Intelisys brand and team team -- executives, sales directors, support staff and more -- are expected to remain in place under ScanSource's ownership, according to a source allegedly familiar with the deal. The acquisition is expected to close in the quarter ending Sept. 30, 2016, subject to various regulatory approvals, two source say.

ChannelE2E has not been able to confirm the deal's valuation, nor have we confirmed an announcement date -- though sources suggest it could come as soon as Monday, August 8, before markets open.

WANs and LANs Converge

ChannelE2E reached out to a range of sources for their thoughts on trends that may have triggered the alleged ScanSource-Intelisys deal.

Ted Schuman Ted Schuman

Among those who answered our call for perspectives: Ted Schuman, CEO of PlanetOne, which provides telecom agents and channel partners with a range of services, technology solutions and sales resources.

From Schuman's vantage point, the line between WAN and LAN partners is blurring in many ways -- as telco agents and VARs increasingly cross over into each other's domains. More than two years ago, Schuman saw the LAN-WAN convergence wave early, and positioned PlanetOne accordingly -- ahead of the current M&A wave.

Without commenting directly about the alleged ScanSource-Intelisys deal, Schuman said telco agents will likely be a bit nervous as the M&A wave intensifies -- especially as publicly held companies buy up telecom-oriented players. PlanetOne, however, will stay the course amid rapid organic growth and has no plans to pursue M&A, Schuman said.

Still, Schuman was quick to congratulate the Intelisys team -- saying that if a deal occurred he hoped the valuation was a hearty one.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.