ScanSource expands higher-margin IT Services footprint with $220.5 million MicroAge acquisition

ScanSource is expanding its presence in higher-margin IT services after agreeing to acquire technology solutions integrator and managed services provider MicroAge for $220.5 million in cash. The deal is designed to strengthen ScanSource’s capabilities across cloud, cybersecurity, data centers and artificial intelligence.

A Shift Toward Services

The acquisition marks another step in ScanSource’s strategy to move beyond traditional technology distribution and increase its exposure to services-led business models.

MicroAge provides IT consulting, professional services, managed services and digital transformation solutions. The company helps organizations design, implement, secure, manage and optimize their IT environments, giving ScanSource access to capabilities that typically generate higher margins than hardware distribution.

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

Reaching 2,400 More Customers

MicroAge serves approximately 2,400 U.S. customers and has more than 200 employees. Its team includes specialized solution architects and maintains relationships with major technology providers such as Microsoft, Dell Technologies, Sophos, Hewlett Packard Enterprise, CrowdStrike and VMware.

ScanSource expects to use those capabilities to support its existing channel partners. The company sees opportunities to provide professional and managed services to technology resellers that may not have the personnel or technical infrastructure to deliver services such as cybersecurity implementation, cloud management and AI solutions themselves.

Focus on Cloud, Cybersecurity and AI

MicroAge’s expertise also gives ScanSource a stronger position in several of the technology industry's fastest-growing areas.

The company brings capabilities in cloud migration and management, cybersecurity, data center implementation and AI solutions development. ScanSource expects these services to help accelerate revenue growth while improving its overall margin profile.

The move reflects a wider shift in the technology distribution industry, where companies are increasingly looking beyond hardware sales toward recurring revenue from managed services, cloud, cybersecurity, data and AI.

Deal Expected to Close in September

ScanSource will fund the acquisition through borrowings under its existing credit facility. The transaction is expected to close during the quarter ending September 30, 2026, subject to regulatory approval and other customary closing conditions.

ScanSource expects the acquisition to increase gross profit margin, adjusted EBITDA margin and non-GAAP earnings per share during the first year following the closing. The company also expects MicroAge to contribute positively to free cash flow.

The acquisition was announced alongside ScanSource’s fiscal 2026 results. The company reported fourth-quarter revenue of $953.1 million, up 17.3% year over year, while full-year revenue reached $3.23 billion.