ScanSource are poised to buy Imago Group for a sum between £24 – £25 million. The company issued a non-binding letter of intent to acquire Imago Group plc late last week. Pursuant to the letter of intent, ScanSource will be acquiring Imago’s operations in the United Kingdom, France, and their recently acquired business in Germany.
Imago sales for fiscal year ended July 31, 2014 are estimated to total approximately GBP 50 million (approximately US$83 million) with operating margins consistent with ScanSource’s Communications business. The all-cash transaction as currently negotiated includes an initial purchase price of approximately GBP 24.5 million (approximately US$41 million), plus earnout payments over the next two years.
Imago provides a full suite of value-added services in video, voice and data, including project initiation, implementation and training, as well as a strategy in assisting resellers with implementing cloud solutions via public, private or hybrid means.
“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.”
“I am incredibly excited about joining the ScanSource team,” said Mr. Vickerage. “Our resellers will have access to an expanded portfolio of solutions from ScanSource and Imago, while our vendors will benefit from the enhanced channel opportunities available to them.”
It is expected that Imago would operate as a separate business unit as part of the ScanSource video, voice and data strategy in Europe.
The proposed acquisition would be subject to regulatory approvals and is expected to close in the quarter ending September 30, 2014.
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