Polycom’s largest US distributor and POS specialist ScanSource has issued a letter of intent to acquire the Imago Group plc, Europe’s largest video solutions company. ScanSource will be acquiring Imago’s operations in the United Kingdom, France, and their recently acquired business in Germany.
Founded in 1991, Imago has nearly 120 employees in the United Kingdom, France and Germany. In June 2014, Imago acquired VITEC Distribution, a videoconferencing distributor in Germany. Imago sales for the fiscal year ended July 31, 2014 are estimated to total approximately £54 million, and the all-cash transaction as currently negotiated includes an initial purchase price of approximately £24.5 million, plus earn-out payments over the next two years.
The acquisition as contemplated in the letter of intent is expected to increase earnings per share and return on capital in the first year of the Nasdaq quoted ScanSource after closing, excluding one-off acquisition costs. “The proposed acquisition of Imago represents the next step in ScanSource’s strategy to be the leading value-added distributor of video, voice and data solutions for resellers in Europe,” said Mike Baur, CEO, ScanSource, Inc.
“Ian Vickerage, Imago Founder and Managing Director, has grown his business into the best value-added distributor of video and voice solutions in Europe. He has agreed in the letter of intent to remain as Managing Director of the company and will continue to lead the talented management team he has built at Imago.”
After completing the acquisition, it is expected that Imago will operate as a separate business unit as part of the ScanSource video, voice and data strategy in Europe. Ian Vickerage will report to Mike Ferney, President, Worldwide Communications and Services, ScanSource, Inc. Mike Ferney is responsible for the company’s two communications business units located throughout Belgium, France, Germany, and the UK. ScanSource would have nearly 400 employees located in more than 15 offices throughout Europe in its Communications and POS and Barcode business units.
“The Imago team sees huge advantages from joining forces with ScanSource. This acquisition will give our resellers privileged access to the Imago/ScanSource support network in Europe, USA and Latin America, enabling them to compete far more effectively for large local deals,” said Ian Vickerage.
INSERT PIC with caption:
Ian Vickerage, Imago Founder and Managing Director: ““The Imago team sees huge advantages from joining forces with ScanSource.”