ScanSource has agreed to acquire MicroAge for $220.5 million as part of a strategic push to expand service offerings across its channel partner network, the company announced Thursday. The distributor also reported 17 percent revenue growth in its fourth fiscal quarter of 2026, which ended June 30. Chair and CEO Mike Baur told CRN that the acquisition wasn't initially on the company's radar but became attractive once MicroAge was put up for sale by its private equity owner after several years.
The acquisition brings a services-rich business into ScanSource's portfolio, with MicroAge offering managed services and professional services that have evolved from its origins as a value-added reseller. Stephen Jones, senior executive vice president and chief financial officer, said the majority of the company's 17 percent quarterly revenue increase came from volume demand rather than price increases, though he acknowledged that pinpointing exact price impact remains challenging for distributors. The deal is expected to close by the end of ScanSource's first fiscal quarter, which wraps up in September, with results announced in early November. For the new fiscal year 2027, the company projects 6 percent to 10 percent top-line revenue growth excluding the MicroAge acquisition, mirroring the 6.2 percent growth achieved in fiscal 2026.
"The end game is how do we take their services and offer them to the rest of our channel partners," Baur said, describing the post-closing strategy as less about integration and more about distributing MicroAge's existing services and hardware through ScanSource's solution provider channel. According to Baur, MicroAge has developed expertise in helping hardware resellers transition to higher-margin technologies like AI and data centers, making it valuable for ScanSource's traditional barcode value-added resellers. The acquisition also brings new vendor relationships, including Dell Technologies, which recently shifted its distribution strategy by ending its Arrow ECS partnership and expanding with D&H. Baur noted that while Dell is one of MicroAge's preferred suppliers, any benefit on the distribution side isn't the immediate focus, though it will allow ScanSource to build a relationship with Dell's team over time.
The MicroAge deal accelerates ScanSource's convergence strategy of bringing IT services to its traditional telecom channel, a shift the company has been pursuing through initiatives like its Converge Communications team announced last quarter. Baur explained that the team has seen strong uptake from both traditional solution providers looking to sell recurring revenue and trusted advisors beginning to sell edge devices like AudioCodes equipment and Jabra headsets. The company believes channel conflict will be minimal because MicroAge operates in a small U.S. market share with little client overlap, and its data center technology sales target different buyers than ScanSource's security solution providers do. When similar concerns arose after the Resourcive acquisition two years ago, only a handful of conflicts emerged, and ScanSource backed out of those deals rather than compete with existing partners. The company plans to use upcoming Partner First and Intelisys conferences over the next 60 days to gather feedback from channel partners on the acquisition and help them develop growth plans. For decision-makers evaluating channel expansion, the bet reflects a broader industry tension between building services capability organically versus acquiring it ready-made. Whether partners embrace cross-selling outside their traditional lanes will determine if convergence delivers on its promise or simply adds complexity.