ScanSource Announces Agreement to Sell Latin America Business Outside of Brazil to Intcomex
: Melissa AndrewsTitle
: Manager, Worldwide Public RelationsPhone
: Greenville, SC - Worldwide HeadquartersDate
: Monday, August 10, 2020
ScanSource, Inc. (NASDAQ: SCSC) today announced that it has agreed to sell its products businesses in Mexico, Colombia, Chile, and Peru and its Miami-based export operations (the “Latin America business outside of Brazil”) to Intcomex. This action is part of ScanSource’s strategic portfolio repositioning to align investments with higher-growth, higher-margin businesses, including ScanSource Brazil.
Intcomex is the leading provider of value-added solutions and technology products in Latin America, outside of Brazil, and the Caribbean. It has been in operation for more than 30 years and has a deep understanding of the Latin American distribution market and geography. Its in-depth knowledge of the value-added business model and the channel underscores the company’s strong alignment with the ScanSource business.
“After a very thorough process, we are pleased to have found a highly respected, well-established buyer with a proven track record in Latin America,” said Mike Baur, Chairman and CEO, ScanSource, Inc. “Our more than 140 employees in Latin America are excited to become part of Intcomex, a company that shares our commitment to long-term partner relationships. Our business in Latin America fits well with the Intcomex business, and I see this as a positive move for our employees, partners and suppliers.”
“We welcome our new employees, partners, clients and suppliers,” said Mike Shalom, CEO, Intcomex. “The acquisition further solidifies our over thirty-year commitment of local distribution coupled with long-standing supplier and customer relationships.”
ScanSource expects its Latin America business outside of Brazil to be classified as “held for sale” at June 30, 2020 and reported as discontinued operations. Related to the “held for sale” classification, ScanSource expects to record a pre-tax non-cash charge of approximately $28 million. The transaction is expected to close by September 30, 2020, subject to the satisfaction of customary closing considerations. The terms of the agreement were not disclosed.
Safe Harbor Statement
This press release contains “forward-looking” statements, including the expectations with respect to closing of the sale of the Company’s Latin America business outside of Brazil, which involve risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated results, including, but not limited to, the Company’s ability to complete the sale and other factors set forth in the "Risk Factors" contained in the Company's annual report on Form 10-K for the year ended June 30, 2019 and quarterly report on Form 10-Q for the quarter ended March 31, 2020, filed with the Securities and Exchange Commission. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
Intcomex is the leading platform of value-added solutions and technology products in Latin America and the Caribbean, outside of Brazil. The company offers and distributes a wide range of products, including computer equipment, components, peripherals, mobile devices, software, accessories, networking products, security products, point of sale and digital consumer electronics, as well as cloud services to more than 50,000 customers in 41 countries in the region.
Intcomex also offers a comprehensive service solution that includes training for the channel and sales floor, technical service, guarantee services and financial services and local inventory, with an infrastructure in the region consisting of a network of 15 subsidiaries and two distribution centers. Its office headquarters are in Miami, Florida. For more information, visit the official website at the following link: http://www.intcomex.com.
About ScanSource, Inc.
ScanSource, Inc. (NASDAQ: SCSC) is at the center of the technology solution delivery channel, connecting businesses and providing solutions for their complex needs. ScanSource sells through multiple, specialized routes-to-market with digital, physical and services offerings from the world’s leading suppliers of point-of-sale (POS), payments, barcode, physical security, unified communications and collaboration, telecom and cloud services. ScanSource enables its sales partners to create, deliver and manage solutions for end-customers across almost every vertical market. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2019 Best Places to Work in South Carolina and on FORTUNE magazine’s 2020 List of World’s Most Admired Companies. ScanSource ranks #654 on the Fortune 1000. For more information, visit www.scansource.com.