ScanSource, Inc. (ScanSource) operates as a leading technology distributor connecting devices to the cloud and accelerating growth for channel sales partners across hardware, software as a service (‘SaaS’), connectivity and cloud services. ScanSource enables channel sales partners to deliver solutions for their end users to address changing buying and consumption patterns. ScanSource uses multiple sales models to offer technology solutions from leading suppliers of specialty technologies, connec...
ScanSource, Inc. (ScanSource) operates as a leading technology distributor connecting devices to the cloud and accelerating growth for channel sales partners across hardware, software as a service (‘SaaS’), connectivity and cloud services. ScanSource enables channel sales partners to deliver solutions for their end users to address changing buying and consumption patterns. ScanSource uses multiple sales models to offer technology solutions from leading suppliers of specialty technologies, connectivity and cloud services. It provide technology solutions and services from more than 500 leading suppliers of mobility and barcode, point-of-sale (‘POS’), payment terminals, physical security, networking, communications, connectivity and cloud services. The company's two operating segments, Specialty Technology Solutions and Intelisys & Advisory, represent the different sales models the company use in executing its technology distribution growth strategy.
Segments
The company operate its business under a management structure that enhances its technology distribution growth strategy. Effective July 1, 2024, the company realigned its operating segments to represent the different sales models it uses in executing its technology distribution growth strategy. The two realigned segments are Specialty Technology Solutions and Intelisys & Advisory. The Specialty Technology Solutions segment combines the company's former operating segments, with the exception of the company's Intelisys business. The Intelisys & Advisory segment includes the Intelisys and technology advisors businesses, including Channel Exchange (formerly known as intY USA), RPM Software and Resourcive. Both segments include recurring revenue.
Specialty Technology Solutions Segment
The Specialty Technology Solutions segment operates in the United States, Canada, and Brazil and includes specialty technology solutions distributed through a wholesale/resale sales model. This segment includes hardware, SAAS and subscription services. The specialty technology solutions include the following:
Mobility and barcode - mobile computing, barcode scanners and imagers, radio frequency identification devices, barcode printing and related services.
POS - Point of Sale systems, integrated POS software platforms.
Payment terminals - Self-service kiosks including self-checkout, payment terminals and mobile payment devices.
Physical security - video surveillance and analytics, video management software and access control.
Networking - switching, routing and wireless products and software;
Communications - voice, video, communication platform integration and contact centre solutions, and
Connectivity - managed connectivity and wireless enablement solutions.
Intelisys & Advisory Segment
The Intelisys & Advisory segment operates in the United States and consists of sales and services to both channel sales partners (Intelisys) and end users (Advisory). As a technology services distributor, or TSD, Intelisys distributes connectivity, cloud and next-generation technologies through an agency sales model. Channel sales partners also have access to SaaS and subscription-based services through the company’s proprietary tools, platforms and flexible routes to market. In addition to traditional telecom services, key technology areas include:
Connectivity & SDN (Software-Defined Networking)
CX (Unified Communications as a Service and Contact Center as a Service)
Cloud/Data Centre
Security
Managed AI
Wireless & IoT
By offering flexible routes to market and a robust solutions portfolio, this segment helps channel sales partners service a wide range of end users, including businesses of all sizes from VSB (‘Very Small Business’) to Enterprise size businesses.
Suppliers
The company provide products and services from approximately 500 suppliers, including key suppliers AT&T, Avaya, Axis, Cisco, Comcast Business, Dell, Elo, Extreme, Five9, Fortinet, Hanwha, Honeywell, HP Poly, HPE/Aruba, Ingenico, Lumen, Microsoft, NiCE, RingCentral, Ubiquiti, Verifone, Verizon, Zebra Technologies and Zoom.
The company provide products and services from many of its key suppliers in all of its geographic markets; however, certain suppliers only allow distribution to specific geographies. It typically purchases products directly from the supplier and its supplier agreements generally do not restrict it from selling similar or competitive products or services. The company has the flexibility to terminate or curtail sales of one product line in favor of another due to technological change, pricing considerations, product availability, channel sales partner demand or supplier distribution policies.
Products from two suppliers, Cisco and Zebra, constituted more than 10%, of its net sales for the fiscal year ended June 30, 2025.
The company have three non-exclusive agreements with Cisco. One agreement covers the distribution of Cisco products in the United States and has a two-year term. The second agreement covers the distribution of products in Brazil and has a two-year term. Each of these agreements must be renewed by written agreement, which is typically entered into prior to expiration.
The company has three non-exclusive agreements with Zebra. One agreement covers sales of Zebra Enterprise Visibility & Mobility (‘EVM’) products in North America and Brazil, while the other two agreements cover sales of Zebra Asset Intelligence & Tracking (‘AIT’) products in North America and Brazil, respectively. The Zebra agreements each have a one-year term that automatically renews for additional one-year terms.
The company currently market over 65,000 products from approximately 500 hardware, software and service suppliers to approximately 25,000 channel sales partners. It sell products and services to the United States and Canada from its facilities located in Mississippi, California and Kentucky; into Brazil from facilities located within the Brazilian states of Paraná, Espírito Santo and Santa Catarina. The company provide some of its digital products, which include SaaS and subscriptions, through its digital tools and platforms.
The company’s offerings to its channel sales partners include hardware, software, services and connectivity across premise, hybrid and cloud environments. The company is able to provide a combination of offerings from multiple suppliers or give its channel sales partners access to additional services, including configuration, key injection, integration support and others to deliver solutions.
The company provide its channel sales partners and suppliers with an array of pre-sale business tools and value-added services, including market and technology solution expertise, education and training, product configuration tools, technical support, logistics and channel financial services. These services allow its channel sales partners to gain knowledge and experience on marketing, negotiation and selling, to improve customer service, to profitably grow their business and be more cost effective. The company’s business is enhanced by its ability and willingness to provide the extra level of services that keep both its channel sales partners and suppliers satisfied.
The company offer technology solutions and services that include the following:
Mobility and Barcode: It offer automatic identification and data capture (‘AIDC’) technology that incorporates the capabilities for electronic identification and data processing without the need for manual input. These solutions consist of a wide range of products that include portable data collection terminals, wireless products, barcode label printers and scanners. As AIDC technology has become more pervasive, applications have evolved from traditional uses, such as inventory control, materials handling, distribution, shipping and warehouse management, to more advanced applications, such as healthcare.
Networking: Its networking products include wireless and networking infrastructure products. Networking products are integral to its technology solutions, serving as the backbone that connects devices and applications. Incorporating advanced networking technologies helps to ensure reliable data flow, seamless mobility, and secure communications, enabling its partners to deliver effective, scalable solutions that meet diverse end-user needs.
Physical Security: It provides electronic physical security solutions that include identification, access control, video surveillance and intrusion-related products. Physical security products are used every day across every vertical market to protect lives, property and information. These technology solutions require specialized knowledge to deploy effectively, and it offer in-depth training and education to its channel sales partners to enable them to maintain the appropriate skill levels.
POS: It provides POS solutions for retail, grocery and hospitality environments to efficiently manage in-store sales and operations. POS solutions include computer-based terminals, tablets, monitors, payment processing solutions, receipt printers, pole displays, cash drawers, keyboards, peripheral equipment and fully integrated processing units.
Payment Terminals: It offers payment terminals, comprehensive key injection services, reseller partner branding, extensive key libraries, ability to provide point-to-point encryption, and redundant key injection facilities. It has the resources to deliver secure payment devices that are preconfigured and ready for use. In addition, the company partner with ISVs to deliver to merchants integrated tablet POS hardware that a merchant may purchase outright or ‘as a service,’ and offer merchant hardware support and next-day replacement of tablets, terminals and peripherals.
Communications: The company offer communications solutions, delivered through the cloud, on-premise or via a hybrid approach, such as voice, video, integration of communication platforms and contact center solutions. These offerings combine voice, video and data with computers, telecommunications and the internet to deliver communications solutions on-premise. Software and hardware products include IP-based telephony platforms, Voice over Internet Protocol systems, private branch exchanges, call center applications, video conferencing, desk phones, headsets and cloud-enabled endpoints. Cloud-delivered services, such as unified communications, contact center and video conferencing, enable end users to consume and pay for communications services, typically on a monthly subscription basis.
Connectivity and Cloud Services: It offers business communications services, including voice, data, access, cable collaboration, managed connectivity, wireless enablement solutions and cloud. It focuses on empowering and educating channel sales partners so they can advise end users in making informed choices about services, technology and cost savings. Through its digital tools and platforms, the company offer channel sales partners another way to grow their recurring revenue practices and take the friction out of acquiring, provisioning and managing SaaS offerings. It has contracts with more than 200 of the world’s leading telecom carriers and cloud services providers.
Competition
In company’s Specialty Technology Solutions segment, it compete with broad-line distributors, such as Ingram Micro and TD Synnex, in most geographic areas, and more specialized security distributors, such as ADI and Wesco. It also compete against other more specialized AIDC and POS distributors, such as BlueStar. In its Intelisys & Advisory segment, the company compete against other technology service distributors including Avant and Telarus..
Sales
The company’s sales organization consists of inside and field sales representatives located in the United States, Canada and Brazil. The majority of its channel sales partners are assigned to a dedicated sales representative or team whose main focus is developing relationships and providing its channel sales partners with solutions to meet their end-user’s needs. The company’s sales teams are advocates for and trusted advisers to its channel sales partners.
Marketing
The company market its technology solutions and services through a range of digital and print channels, including online product catalogs customized for its North American and Brazilian markets; social media; search engine optimization and marketing; content marketing; content automation; and e-commerce and email direct marketing, among others. Its marketing practices are tailored to fit the specific needs of its channel sales partners and suppliers - ensuring it help channel sales partners create, deliver and manage solutions for end users across our vertical markets. The company’s comprehensive marketing efforts include sales promotions, advertisements, management of sales leads, trade show design and event management, advertorials, content creation, partner events and training and certification courses with leading suppliers in an effort to recruit prospective channel sales partners.
Trade and Service Marks
The company conduct its business under the trade names ‘ScanSource POS and Barcode,’ ‘ScanSource Catalyst,’ ‘ScanSource Communications,’ ‘ScanSource Services,’ ‘ScanSource Networking and Security,’ ‘ScanSource Brasil,’ ‘Network1, a ScanSource company,’ ‘Intelisys,’ ‘POS Portal,’ ‘RPM Software, a ScanSource company,’ ‘Advantix,’ ‘Resourcive,’ ‘Channel Exchange,’ and ‘SCSC Cascade.
Certain of its tradenames, trademarks, and service marks are registered, or are in the process of being registered, in the United States or various other countries. The company have been issued registrations for many of its marks including, among others, ‘ScanSource,’ ‘Catalyst Telecom,’ and ‘Network1’ in countries in its principal markets. Even though its marks are not registered in every country where it conduct business, in many cases the company have acquired rights in those marks because of its continued use of them. These marks do not have value assigned to them and have a designated indefinite life.
Business Acquisitions
On August 8, 2024, ScanSource acquired substantially all of the assets of Resourcive, a leading technology advisor, through its subsidiary ScanSource Agency, Inc. Resourcive delivers strategic IT sourcing solutions to mid-market and enterprise businesses. On August 15, 2024 , ScanSource acquired, through its subsidiary Advantix ScanSource, LLC, substantially all of the assets of Advantix, a managed connectivity experience provider specializing in wireless enablement solutions. The combined initial purchase price of these acquisitions, net of cash acquired, was approximately $ 56.7 million . The Advantix acquisition is included in the Specialty Technology Solutions segment, and the Resourcive acquisition is included in the Intelisys & Advisory segment. Both acquisitions included future earnout payments, and the company recorded contingent consideration liabilities at the acquisition dates representing the fair value of estimated amounts payable to sellers. See Note 10 - Fair Value of Financial Instruments for the related disclosures regarding the contingent consideration liabilities recognized in connection with these acquisitions.
The purchase prices were allocated to the assets acquired and liabilities assumed based on their estimated fair values on the transaction dates. Intangible assets acquired include trade names, customer relationships, and developed technology. See Note 7 - Goodwill and Other Identifiable Intangible Assets for the amounts of goodwill and intangible assets recognized in connection with these acquisitions. All of the goodwill recognized is expected to be deductible for tax purposes. The impact of these acquisitions was not material to the consolidated financial statements. The company recognized $ 1.0 million and $ 0.4 million for the fiscal years ended June 30, 2025 and 2024, respectively, in acquisition-related costs included in selling, general and administrative expenses on the Condensed Consolidated Income Statements.
Business Sale
On December 19, 2023, the company completed the sale of its UK-based intY business. Under the stock purchase agreement, the company received proceeds of $ 17.6 million in cash for the sale, net of cash transferred. The business sale resulted in a $ 14.2 million gain on sale after considering the net assets sold. The impact of this sale was not material to the consolidated financial statements. The company received an additional $ 2.6 million related to the sale for cash released from escrow in fiscal year 2025.
During the fiscal year ended June 30, 2023, the company received a payment related to a tax settlement of $ 1.7 million for its divested businesses in Latin America, outside of Brazil.
History
ScanSource, Inc. was founded in 1992. The company was incorporated in South Carolina in 1992.
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.
