Imago Group, Europe’s largest video solutions company, will be acquired by ScanSource, an international value-added distributor of speciality technology products. ScanSource will be acquiring Imago’s operations in the United Kingdom, France, and its recently acquired business in Germany (videoconferencing distributor VITEC Distribution, which it bought in June 2014).
Founded in 1991, Imago has nearly 120 employees across the three countries. The company provides a full suite of value-added services in video, voice and data, including project initiation, implementation and training, as well as a strategy in assisting resellers with implementing Cloud solutions via public, private or hybrid means. Vendor partners include Polycom, Barco, Samsung, and NEC. In 2013, Imago was named by Polycom as its Distributor of the Year in EMEA.
“The proposed acquisition of Imago represents the next step in ScanSource’s strategy to be the leading value-added distributor of video, voice and data solutions for resellers in Europe,” said Mike Baur, CEO, ScanSource. “Ian Vickerage, Imago founder and managing director [pictured], has grown his business into the best value-added distributor of video and voice solutions in Europe. He has agreed in the letter of intent to remain as managing director of the company and will continue to lead the talented management team he has built at Imago.”
Ian Vickerage said: “The Imago team sees huge advantages from joining forces with ScanSource. This acquisition will give our resellers privileged access to the Imago/ScanSource support network in Europe, USA and Latin America, enabling them to compete far more effectively for large local deals.”
After completing the acquisition, it is expected that Imago will operate as a separate business unit as part of the ScanSource video, voice and data strategy in Europe. Ian Vickerage will report to Mike Ferney, president, worldwide communications and services, ScanSource. Ferney is responsible for the company’s two communications business units located throughout Belgium, France, Germany, and the UK. The deal would leave ScanSource with nearly 400 employees located in more than 15 offices throughout Europe in its Communications and POS & Barcode business units.
The non-binding letter of intent regarding the acquisition was issued on 21 August 2014. Imago sales for the fiscal year ended 31 July 2014 are estimated to total approximately £54 million, and the all-cash transaction as currently negotiated includes an initial purchase price of approximately £24.5 million, plus earn-out payments over the next two years. The proposed acquisition is subject to the negotiation and execution of a definitive purchase agreement, and is also subject to regulatory approvals. It is expected to close in the quarter ending 30 September 2014.