ScanSource announces agreement to acquire POS Portal for $144.9M
ScanSource (SCSC) announced a definitive agreement to acquire POS Portal, a distributor of payment devices and services primarily to the SMB market segment.
“ScanSource and POS Portal will create the industry’s largest payments channel, ensuring customers have access to the solutions, services and support that can help them be successful,” the company said.
The two companies sell through complementary solution delivery channels with little customer overlap. ScanSource primarily serves the enterprise and mid-market merchant segments, with thousands of POS value-added resellers and system integrators as customers.
POS Portal reaches the SMB merchant segment via strong relationships with the leading payment processors, independent sales organizations and many of the leading tablet-based POS software developers.
For the first full year after closing, POS Portal net sales are estimated to total approximately $110M with an estimated EBITDA margin in the low teens.
Under the agreement, the all-cash transaction includes an initial purchase price of approximately $144.9M, plus an earn-out payment up to $13.2M to be made on November 30.
The earn-out payment is based on earnings before interest expense, taxes, depreciation and amortization for the trailing twelve months ending September 30.
The acquisition is expected to be accretive to earnings per share in the first year after acquisition, excluding one-time acquisition costs.
POS Portal CEO Buzz Stryker and Scott Agatep, Chief Operating Officer, along with the POS Portal team, will join ScanSource and provide the leadership and direction in further developing the ScanSource payments business.
Upon completion of the transaction, POS Portal will become part of the Worldwide Barcode, Networking and Security segment of ScanSource.
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