Monitor next quarterly report for initial MicroAge revenue contribution and margin accretion versus the $220.5M purchase price. The ~$225M debt draw increases financial risk, so watch for any leverage covenant updates or rating agency actions. The stock's recent strong performance (+12.99% on a prior gap signal) suggests the deal was well-received, but integration execution is the key risk.
Price Chart
Executive Summary
ScanSource completed its $220.5M all-cash acquisition of MicroAge on September 1, 2026, funded by a ~$225M draw on its existing revolving credit facility. The company expects the deal to be accretive to gross profit margin, adjusted EBITDA margin, and non-GAAP EPS in the first year post-close. The debt-funded acquisition increases leverage but targets margin expansion in a consolidating distribution market.
Key Facts
- Completed acquisition of MicroAge for $220.5M in cash on September 1, 2026.
- Funded by ~$225M borrowing under existing revolving credit facility (PNC Bank, dated Dec 18, 2025).
- Purchase price includes $3M escrow for working capital adjustments and $6.8M escrow for indemnification claims.
- Transaction expected to be accretive to gross profit margin, adjusted EBITDA margin, and non-GAAP EPS in first year post-close.
- Expected to be free cash flow positive for ScanSource.
Financial Impact
Acquisition price of $220.5M funded by ~$225M in new debt, increasing total leverage from a prior undisclosed base. Accretion to margins and EPS expected but not quantified.
Risk Factors
- Integration risk — MicroAge may not deliver expected margin accretion or synergies.
- Increased leverage from ~$225M debt draw could strain balance sheet if organic growth slows.
- Forward-looking accretion statements are not guaranteed; actual results may differ materially.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-379371 |
| Document: d83281dex991.htm | 0001193125-26-379371 |
| Document: 0001193125-26-379371-index-headers.html | 0001193125-26-379371 |
| Document: 0001193125-26-379371-index.html | 0001193125-26-379371 |
| Document: 0001193125-26-379371.txt | 0001193125-26-379371 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | DEFA14A | — | awaiting T+20 | — | — |
Oct 26, 2026 today | DEF 14A | — | awaiting T+20 | — | — |
Oct 20, 2026 6d ago | SC 13G/A | $60.23 | awaiting T+20 | — | $60.98 (+1.25%) |
Oct 9, 2026 17d ago | SC 13G/A | $60.67 | awaiting T+20 | — | $60.98 (+0.51%) |
Sep 14, 2026 6w ago | Insider Cluster | $57.63 $61.97 | ▼ −7.53% | ▼ −4.81% | $60.98 (−5.81%) |
Sep 4, 2026 7w ago | Insider Cluster | $57.69 $60.94 | ▲ +5.63% | ▲ +3.67% | $60.98 (+5.70%) |
Sep 2, 2026 7w ago | 8-K | $56.64 $62.22 | ▲ +9.85% | ▲ +10.00% | $60.98 (+7.66%) |
Aug 20, 2026 9w ago | 8-K | $56.39 $57.65 | ▲ +2.23% | ▲ +2.23% | $60.98 (+8.14%) |
Aug 17, 2026 10w ago | 8-K | $51.71 $57.63 | ▲ +11.45% | ▲ +13.43% | $60.98 (+17.93%) |
May 29, 2026 21w ago | 8-K | $48.13 $52.09 | ▲ +8.23% | ▲ +9.53% | $60.98 (+26.70%) |
US Market Status
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