Scansource Joins Forces With Intelisys

The merger between IT distributor ScanSource and master agent Intelisys marked the first time that a distributor purchased a master agent. The deal, which was valued at $83.6 million plus earn-outs, will let more VARs start selling telecom services and earn monthly recurring revenue.

The merger will also allow Greenville, S.C.-based ScanSource, a hardware distributor, change its business to a recurring revenue model as more capital expenditure purchases are migrating to the cloud. While the deal was the first of its kind, many partners believe that it's unlikely to be the last as more IT distributors look to break into the telecom and cloud services markets.