ScanSource, the Greenville, South Carolina-based technology distributor, announced a definitive agreement to acquire MicroAge, an Arizona-based IT solutions integrator, in an all-cash deal worth $220.5 million. The announcement landed the same day the company reported fourth-quarter and full-year fiscal 2026 earnings, and investors responded by sending ScanSource shares up more than 19%.
ScanSource says it will fund the acquisition through borrowings under its existing credit facility, paying the full purchase price at closing. According to Greenville Business Magazine, the deal is subject to regulatory approval and other customary closing conditions, and it's expected to close in the quarter ending September 30, 2026. Per SEC regulatory filings, closing hinges on the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and the purchase price includes $3.0 million placed into escrow for working capital adjustments plus $6.8 million held in escrow for potential indemnification obligations.
A Legacy Arizona Brand Joins a Growing Portfolio
MicroAge traces its roots to 1976, when co-founders Jeffrey D. McKeever and Alan Hald opened a Byte Shop computer franchise in Tempe, Arizona, before launching the first MicroAge Computer Store in 1979 and building it into a major national distributor, according to Wikipedia. The company marked its 50th corporate anniversary in January, operating out of Phoenix and Tempe with roughly 2,400 U.S. clients and more than 200 associates, per a report from ACCESS Newswire.
Today MicroAge describes itself as a leading IT solutions integrator, managed services provider, and digital transformation partner, according to Greenville Business Magazine's reporting. The company holds partnerships with Microsoft, Dell, Sophos, HPE, CrowdStrike, and VMware, and offers professional and managed services for channel partners. It has also been recognized as one of the industry's top performers on CRN's lists, appearing on the CRN Solution Provider 500, MSP 500, Tech Elite 250, and Fast Growth 150 rankings.
“MicroAge has had tremendous brand recognition for more than 50 years,” MicroAge's Mike Baur said, according to the outlet's reporting. Larry Gentry, in the same coverage, said ScanSource is the right partner for MicroAge's next phase of growth. ScanSource says MicroAge will be better positioned to scale its services-led model in high-growth markets as part of the combined company.
Record Quarter Fuels the Stock Pop
The acquisition announcement arrived alongside ScanSource's fourth-quarter and full fiscal year 2026 results. The company reported full-year net sales of $3.23 billion, a 6.1% increase year-over-year, and fourth-quarter net sales of $953.1 million, up 17.3% from the prior year, according to Business Wire. Fourth-quarter non-GAAP earnings per share grew 43% year-over-year to a company-record $1.46, and the company generated $113.8 million in free cash flow for the year, converting 124% of non-GAAP net income, per Seeking Alpha.
That combination of a earnings beat and a headline acquisition sent ScanSource shares surging more than 19% in trading, as tracked by Finviz. For fiscal year 2027, ScanSource issued organic guidance projecting 6% to 10% revenue growth, adjusted EBITDA between $158 million and $165 million, and at least $85 million in free cash flow — figures that explicitly exclude any financial contribution from MicroAge until after the deal closes, per the same Seeking Alpha report.
Part of a Broader Shift Toward Services
ScanSource expects the MicroAge deal to be free cash flow positive and accretive to gross profit margin, adjusted EBITDA margin, and non-GAAP earnings per share in the first year following close, according to Greenville Business Magazine. The company also points to an expanded total addressable market, new services capabilities, and greater visibility into end-user needs as strategic benefits, and describes MicroAge and ScanSource as sharing similar values, strong cultural fit, and a shared commitment to long-term customer relationships.
The MicroAge purchase follows a pattern for ScanSource, which expanded its technology advisory and managed connectivity services in August 2024 by acquiring channel advisor Resourcive and wireless provider Advantix for a combined initial net purchase price of approximately $56.7 million, according to SEC filings. Founded in 1992 and headquartered in Greenville, ScanSource is a Fortune 1000 hybrid technology distributor ranking #923 on that list. Open questions for local watchers include how quickly federal regulators clear the Hart-Scott-Rodino waiting period and how ScanSource updates its full-year guidance once MicroAge's financials are folded in during its next earnings call.
