ScanSource, Inc., a leading global provider of technology products and solutions, announced that it has closed the previously announced acquisition of POS Portal, a leading distributor of payment devices and services primarily to the SMB market segment in the United States. Together, ScanSource and POS Portal will create the industry’s leading payments channel, ensuring customers have access to the solutions, services, and support that will help them be successful.
For the first full year after closing, POS Portal net sales are estimated to total approximately $110 million with an estimated EBITDA margin in the low teens. The acquisition is expected to be accretive to earnings per share in the first year after acquisition, excluding one-time acquisition costs. ScanSource funded the initial cash purchase price of approximately $144.9 million, subject to working capital and other customary adjustments, through borrowings under its revolving credit facility. The agreement includes a cash earn-out payment up to $13.2 million to be made on November 30, 2017, based on POS Portal’s earnings before interest expense, taxes, depreciation and amortization (EBITDA) for the trailing twelve months (TTM) ending September 30, 2017.
“We acquired POS Portal to expand our high-value capabilities and market reach across all payment channels,” said Mike Baur, CEO, ScanSource, Inc. “We want to make it easier for our customers to enter the payments business or grow their payments offerings. We are extremely pleased to welcome the POS Portal team to the ScanSource family and bring our businesses together.”
Buzz Stryker, co-founder, and CEO of POS Portal, stated, “We are very excited to join the ScanSource team and see tremendous opportunities ahead for our customers and employees. Together with ScanSource, we look forward to leading the payments channel, as well as shaping its future form, with innovative solutions and services for our partners.”
Buzz Stryker and Scott Agatep, Chief Operating Officer, along with the entire POS Portal team, will join ScanSource. POS Portal will be a part of the Worldwide Barcode, Networking and Security segment.
