Wheelings & Dealings: ScanSource Buys Intelisys

Distributor Intelisys is being purchased by 25-year-old ScanSource Inc. for approximately $83.6 million. The deal broadens ScanSource’s portfolio, enabling it to expand into the cloud services and telecommunications markets.

That’s a big opportunity, as in the United States alone small and medium-sized businesses spend an estimated $150 billion on telecom services. What’s more, ScanSource says, about 10 percent of the market acquires its services via the channel.

“This next transformation of the channel is clear evidence of evolving end user needs, as we begin to see the bundling of hardware and software with network and cloud,” said Craig Schlagbaum, vice president of indirect channels for Comcast Business. “As our largest master agent partner, Intelisys has been instrumental in helping Comcast Business build a scalable channel. With the combined strength of Intelisys and ScanSource, we expect outstanding customer and partner opportunities to result from bridging these two channels.”

Intelisys, which distributes services of leading cable, cloud, and telecommunications carriers through its network of channel sales partners, reported 2015 gross commissions of $120 million. It has about 120 employees, more than 130 supplier partners, and more than 2,400 sales partners.

“Intelisys is unmatched in the master agency space, and their two-tier model is an ideal fit with our culture and way of doing business,” said ScanSource CEO Mike Baur. “We are entering a high-growth, recurring revenue business that is complementary to our current business and represents a compelling opportunity for our VARs.”

In other recent Intelisys news, Robert Fish recently was named senior channel manager for the Southeast region. He is based in Atlanta and will manage Intelisys Sales Partners in the Southeast and Mid-Atlantic. Fish was previously channel manager for Windstream, at which he spent a decade.