Scansource Buys MicroAge For $220.5 Mln In Cash
(RTTNews) - On Wednesday, Scansource, Inc. (SCSC), a technology product distributor, announced that it has acquired MicroAge, in an all-cash transaction for a purchase price of $220.5 million. The transaction is funded through borrowings under its existing credit facility.
The transaction is expected to be accretive to gross profit margin, adjusted EBITDA margin, and non-GAAP earnings per share in the first year following close, and is also expected to be free cash flow positive for ScanSource.
On the Nasdaq in the pre-market activity, the shares were trading 0.39 percent lower at $56.02, after closing Tuesday's trading 1.49 percent down.
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