ScanSource Agrees To Buy Brazil's Network1 - Quick Facts

(RTTNews) - ScanSource, Inc. (SCSC) said it has signed a definitive agreement to acquire Brazil's Intersmart Comércio Importação Exportação de Equipamentos Eletrônicos, S.A. or Network1, in an all-cash deal valued at about 157 million Brazilian Real or about $60 million, including assumed net debt. Additionally, Network1 is also entitled to earnout payments based on EBITDA over the next four years.

Network1 is one of Brazil's leading value-added distributors with a strong offering of communications equipment and services.

The deal will see ScanSource acquiring all of Network1's operations throughout Latin America, including Brazil, Mexico, Colombia, Chile and Peru. The deal is expected to close later in the week, upon completion of the transfer of funds.

The deal will complement ScanSource's existing successful point-of-sale and barcode business in Brazil.

The deal enables ScanSource to expand its worldwide communications business into Latin America, providing resellers access to the industry's leading vendors, including Avaya, Axis, Checkpoint, Dell, Extreme, F5, HP, Juniper, Polycom, Microsoft, Riverbed and Schneider-Electric.

The deal is expected to be accretive to ScanSource's earnings per share and return on invested capital (ROIC) in the first year after closing, excluding one-time acquisition costs.