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Scansource acquires Intelisys

American POS, network and telecom VAD ScanSource has unveiled a definitive agreement to acquire Intelisys Communications, a distributor of business telecommunications and cloud services. With 2015 gross commissions of €108m, Intelisys distributes services for the main telecom carriers, cable companies, cloud services providers and technology partners through channel sales partners. ScanSource thus broadens its capabilities by entering the telecom and cloud services market with the acquisition of Intelisys. In the United States, small and medium-sized businesses spend an estimated €135B on telecom services. Approximately 10% of this market is currently served by the indirect channel, creating a large and growing addressable channel market for Intelisys and its sales partners. In addition, the market dynamics favor Intelisys' two-tier services-based business model with an expected growth of business opportunities for the indirect channel. With this acquisition, Intelisys' sales partners are better positioned to capture this benefit and have the potential to grow faster than the market. Craig Schlagbaum, Vice President of Indirect Channels for Comcast Business, added, "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. 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."

Intelisys provides agents and value-added resellers (VARs) with an extensive portfolio of services, support and enablement tools to sell cloud and connectivity services. The acquisition accelerates Intelisys’ ability to extend this successful model to the ScanSource VAR community. ScanSource VARs will gain access to Intelisys' robust portfolio of carefully selected, highest-quality connectivity and cloud services offerings, as well as the tools and platforms that help partners build recurring revenue streams.

Under the agreement, the all-cash transaction includes an initial purchase price of approximately €75.4m, plus earn-out payments based on earnings before interest expense, taxes, depreciation and amortization (EBITDA) over the next four years. Intelisys has demonstrated double-digit growth of net revenues and EBITDA, which is projected to continue during the four-year earn-out period. For the first full year after closing, Intelisys’ net revenues, which reflect gross commissions less payments to sub-agents, are estimated to total over €30.7m with a 45% to 50% estimated EBITDA margin.

"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."

Founded in 1994 and based in Petaluma, California, Intelisys operates in the United States and has approximately 120 employees, more than 130 supplier partners, and over 2,400 sales partners. Last year, Intelisys was named one of the Best Entrepreneurial Companies in America by Entrepreneur Magazine for its growth, sustainability and ability to achieve lasting success. The experienced 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' driving mission has always been to enable the growth and success of our sales partners. ScanSource shares that same set of core values. Our commitment will only be strengthened as we become part of the ScanSource team", said Rick Sheldon, Co-Founder of Intelisys. "This is an exciting time for the channel as VARs and telecom agents converge. Together, we believe ScanSource and Intelisys will become the ultimate channel company as we offer an unparalleled experience in the cloud and telecom space, including fully connected solutions for our partners."/p>

The acquisition is expected to close in the quarter ending September 30, 2016, subject to the satisfaction of customary closing conditions and receipt of regulatory approvals. Prior to the close, ScanSource and Intelisys will continue to operate as independent companies.

Comline and Prosoft sign with Showpad and Kingston

Germany: Mac specialist Comline has expanded its offer with ShowPad sales enablement platform. Showpad tool allows resellers to transform more efficiently their online leads in sales. On its side, security VAD Prosoft has been appointed by Kingston as official distributor for its cyphered USB keys in the DACH region. Prosoft will distribute these products through its offices in Austria and Germany.

New partners for ASBIS, Secnet and Softprom

Ukraine: despite all efforts from Russia to hinder economic development through war in the country, Ukraine is slowly but surely recovering, thanks to its government efforts for transparency and against corruption (albeit clearly insufficient for the time being). In the IT market, the distributors are continuing to develop, with, among others, new partnerships with vendors. Broadliner ASBIS has thus started the distribution of Samsung SSD through its reseller network1. Network and security VAD Secure Networking Distribution has launched an infrastructure as-a-service offer in partnership with MIRhosting2. Finally, software specialist Softprom expands beyond its core business through a distribution deal with NAS vendor Synology3. This partnership also covers Azerbaijan, Belarus, Georgia and Moldova (source: Komputernoye Obozrenye 1, 2 and 3).

Datastore and Distrelec sign new vendors, while Ingram Micro finds a new head

Switzerland: storage VAD Datastore has been chosen by Netwrix as official distributor for its governance solutions1. Semiconductor specialist Distrelec has expanded its offer with a selection of Texas Instruments products, including voltage regulators, protective diodes or circuit breakers. Finally, Benno Schlumpf has replaced Thomas Maurer as new managing director for broadliner Ingram Micro2. Benno was previously director of the value business for the ACH (Austria, Liechtenstein and Switzerland) region. It is yet unknown what Thomas Maurer plans to do in the future (source: IT Reseller Schweiz 1 and 2, IT Markt Schweiz).

Nimans expands networks division

United Kingdom: telecom VAD Nimans has announced a significant expansion of its Networking division as it further strengthens its 'cradle to grave' reseller service. Spearheaded by Solutions Sales Manager (Networking), Judith Addison, thousands of new products are available – such as routers and switches – from industry leading brands such as TP-Link, Netgear, DrayTek and HP Enterprise Networking. "We have developed a massive expansion of our range which gives resellers access to thousands of new product lines, as we become a major player in this market", Judith emphasised. "From WLAN, cabinets and cabling to network connectivity, UPS, voice systems and end points, Nimans covers the whole process from start to finish as part of a seamless reseller journey. We are even working on delivering a complete 'office in a box' communications proposition which encapsulates everything we do, from network connectivity right through to end points such as headsets and telephones. We can also offer our own iQ PBX portfolio which complements the huge range of solutions we've now introduced, backed by the highest service levels."

Recent additions

Our directory is updated daily through information sent by vendors and distributors. Here are the latest updates :
Exertis Corepixel AB -  Sweden - Specialist
3D Storm -  France - VAD
AMI Marketing (Pty) Ltd t/a Learning Curve -  South Africa - Specialist
AQM World FZCO -  United Arab Emirates - Specialist
Rare Distribution -  United Arab Emirates - Specialist
Aitek France -  France - Broadliner
Ebertlang Swiss AG -  Switzerland - Specialist
ITANCIA USA Inc. -  United States - Specialist
360Mobile SL -  Spain - Specialist
Smartycom GmbH -  Switzerland - Specialist

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