ScanSource to Buy Managed Services Veteran MicroAge for $220.5 Million

ScanSource is acquiring IT integrator and managed service provider MicroAge in an all-cash transaction valued at $220.5 million. The buyout, which will be financed through ScanSource’s existing credit facility, represents a major push by the Greenville, South Carolina-based distributor to expand its footprint in higher-margin enterprise services.

MicroAge, founded in 1976 and headquartered in Phoenix, brings a substantial customer base spanning managed IT, cloud architecture, and cybersecurity. The deal adds more than 2,400 U.S. commercial clients and over 200 specialized employees to ScanSource’s operational roster.

ScanSource Chair and Chief Executive Officer Mike Baur highlighted the target's long presence in the channel ecosystem, describing MicroAge as an "amazing, legendary company that has had tremendous brand recognition for more than 50 years."

Shifting Up the Value Chain

The move underscores ScanSource’s strategic transition away from a reliance on traditional, low-margin hardware distribution toward services-led revenue models. By absorbing an established systems integrator, the company captures higher-margin recurring revenue streams across cybersecurity and infrastructure management.

The acquisition reflects a broader consolidation trend sweeping the managed service provider (MSP) and channel ecosystem. As mid-market enterprises face escalating IT complexity - driven by hybrid cloud management, heightened compliance demands, and early infrastructure requirements for artificial intelligence workloads - distributors are increasingly acquiring mid-tier MSPs to capture ongoing operational spending rather than relying on cyclical device refresh cycles.

Once finalized, MicroAge's managed solutions and client roster will be folded into ScanSource's broader portfolio, giving the distributor immediate scale in the mid-market enterprise services sector.