ScanSource Announces Plan to Divest Certain Businesses Outside of US, Canada and Brazil
August 20 2019 - 9:05AM
Business Wire
Enhances focus on digital distribution business
globally
ScanSource, Inc. (NASDAQ: SCSC) today announced that it
initiated plans to sell certain businesses outside of the United
States, Canada and Brazil (the “Planned Divestitures”). ScanSource
will continue to operate and invest in its digital distribution
business in these geographies, including its recent acquisitions of
intY, Canpango and Intelisys Global. These plans are part of a
strategic portfolio repositioning to align investments with
higher-growth, higher-margin businesses.
“After considering our strategic options, we decided that the
Planned Divestitures would offer opportunities to accelerate our
profitable growth and cash flow,” said Mike Baur, Chairman and CEO,
ScanSource, Inc. “These actions will enable us to focus our
investments on our higher-growth and higher-margin businesses in
the United States, Canada and Brazil, as well as our digital
businesses globally. This will give investors increased insight
into our long-term growth opportunities.”
The Planned Divestitures, comprised of nondigital distribution
businesses in Europe, UK, Mexico, Colombia, Chile, Peru and the
Miami-based export operations, had net sales of $623 million for
fiscal year 2019 and at June 30, 2019 had working capital of $205
million. ScanSource currently has approximately 490 employees in
these geographies and will communicate regularly with its employees
on the sales process. There is no assurance that this sale process
will result in a transaction or the timing of such transaction.
Conference Call and Webcast
ScanSource will host its earnings conference call and webcast
today, August 20, at 5:00 p.m. ET and will discuss the Planned
Divestitures on the call. A webcast of the call will be available
for all interested parties and can be accessed at
www.scansource.com (Investor Relations section). The webcast will
be available for replay for 60 days.
Safe Harbor Statement
This press release includes forward-looking statements,
including statements regarding the Planned Divestitures and the
Company’s strategic focus. Actual results may differ materially
from those suggested by these statements for a range of reasons,
including, among others, the Company’s ability to find a buyer for
the Planned Divestitures on acceptable terms or to otherwise
dispose of the operations and changes in the Company’s operating
strategy. For additional factors, see the Company's Form 10-K for
the year ended June 30, 2018, and its subsequent Form 10-Qs, all as
filed with the SEC. The Company disclaims any obligation to update
forward-looking statements other than as required by law.
About ScanSource
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 2019 List of World’s
Most Admired Companies. ScanSource ranks #643 on the Fortune 1000.
For more information, visit www.scansource.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190820005469/en/
Gerald Lyons Executive Vice President, Chief Financial Officer
ScanSource, Inc. (864) 286-4854 Mary M. Gentry Vice President,
Treasurer and Investor Relations ScanSource, Inc. (864)
286-4892
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