ScanSource to Divest Certain Businesses Outside of US, Canada and Brazil

GREENVILLE, S.C.--()--ScanSource, Inc. (NASDAQ: SCSC) today announced that it initiated plans to sell certain businesses outside of the United States, Canada and Brazil (the “Planned Divestitures”). ScanSource will continue to operate and invest in its digital distribution business in these geographies, including its recent acquisitions of intY, Canpango and Intelisys Global. These plans are part of a strategic portfolio repositioning to align investments with higher-growth, higher-margin businesses.

“These actions will enable us to focus our investments on our higher-growth and higher-margin businesses in the United States, Canada and Brazil, as well as our digital businesses globally. This will give investors increased insight into our long-term growth opportunities.”

“After considering our strategic options, we decided that the Planned Divestitures would offer opportunities to accelerate our profitable growth and cash flow,” said Mike Baur, Chairman and CEO, ScanSource, Inc. “These actions will enable us to focus our investments on our higher-growth and higher-margin businesses in the United States, Canada and Brazil, as well as our digital businesses globally. This will give investors increased insight into our long-term growth opportunities.”

The Planned Divestitures, comprised of nondigital distribution businesses in Europe, UK, Mexico, Colombia, Chile, Peru and the Miami-based export operations, had net sales of $623 million for fiscal year 2019 and at June 30, 2019 had working capital of $205 million. ScanSource currently has approximately 490 employees in these geographies and will communicate regularly with its employees on the sales process. There is no assurance that this sale process will result in a transaction or the timing of such transaction.

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