In the type of move expected for
some time by industry watchers, Scan-
Source announced a definitive agree-
ment to acquire Intelisys Communica-
tions. As much as anything, the ac-
quisition provides ScanSource’s value-
added distributor partners with direct
access to a bundled set of telecom and
cloud services services and ScanSource
a stream of recurring revenues.
“We are entering a high-growth,
recurring revenue business that is
complementary to our current busi-
ness and represents a compelling
opportunity for our VARs,” said Mike
Baur, CEO, ScanSource.
“This next transformation of
the channel is clear evidence of evolv-
ing end-user needs, as we begin to see
the bundling of hardware and software
with network and cloud,” said Craig
Schlagbaum, vice president of indirect
channels for Comcast Business. “As our
largest ‘Master Agent’ partner, Intelisys
has been instrumental in helping Com-
cast Business build a scalable channel.
With the combined strength of Intelisys
and ScanSource, we expect outstanding
customer and partner opportunities to
result from bridging these two channels.”
Under the agreement, the all-cash
transaction includes an initial purchase
price of approximately $83.6 million,
plus earn-out payments based on EBIT-
DA over the next four years. Intelisys has
demonstrated double-digit growth of net
revenues and EBITDA, which is projected
to continue during the four-year earn-out
period. For the first full year after clos-
ing, Intelisys’ net revenues, which reflect
gross commissions less payments to sub-
agents, are estimated to total over $34
million with a 45 percent to 50 percent
estimated EBITDA margin.
Intelisys currently has approximately
120 employees, more than 130 supplier
partners and more than 2,400 sales part-
ners. ScanSource, meanwhile, announced
that it expects fourth quarter fiscal year
2016 net sales to be approximately $880
million to $885 million, which is below the
previously forecasted range. The acquisition
is expected to close in the quarter ending
September 30, 2016, subject to the satis-
faction of customary closing conditions.
“This is an exciting time for the chan-
nel as VARs and telecom agents con-
verge,” said Rick Sheldon, co-founder
of Intelisys. “Together, we believe Scan-
Source and Intelisys will become the
ultimate channel company as we offer
an unparalleled experience in the cloud
and telecom space, including fully
connected solutions for our partners.”
We doubt this will be the only
merger of this type to happen in 2016.
ScanSource to Acquire Intelisys
SimpleWan Launches Master Agent Channel
MicroCorp Provides Voice Solutions for
Cisco Spark, Meraki MC
SimpleWan, a cloud automated
cyber security and network solution
provider, has expanded its channel
from wholesale into master agent
services with the hire of Brian Purdue,
director of channel sales.
Prior to joining SimpleWan,
Perdue served as a national chan-
nel manager with Mitel and helped
launch its products to the agent chan-
nel. He also has spent years in the
channel supporting agents on com-
plex WAN designs and deployments
throughout his career in the industry,
said the company.
The SimpleWan solution delivers real-
time intrusion defense, as well as cloud
management, SD-WAN technology and
support for key compliance regulations
including PCI DSS and HIPAA.
According to SimpleWan, managed
service providers look for solutions in
two ways. When looking for replacement
cyber security and firewall technologies,
they look at hardware solutions; but
when looking for SD-WAN and network
monitoring, they often look at services
from the agent channel. SimpleWan’s full
suite of features provides both a full ser-
vice offering as well as a legacy hardware
firewall replacement.
“With today’s converging channels it’s
important to connect with our customers
through both methods that best fit their
business model,” said Erik Knight, chief
executive officer, SimpleWan.
If you are a certified Cisco partner,
you’ve probably heard the latest hype
around the Spark and Meraki MC offer-
ings. Through MicroCorp’s relationship
with IntelePeer, certified Cisco partners
are provided with an easy way to earn
monthly recurring commissions on the
voice services.
IntelePeer has developed an API
that enables near real-time provision-
ing of its voice services to deliver
nationwide local, long-distance, toll-
free and E911 services to Cisco Spark
and Meraki customers. The simple
Voice Services Bundle for Spark and
Meraki can be purchased through the
Cisco Marketplace for $8.95 per user
(CCMP) and includes one telephone
number per user, unlimited calling to
48 U.S. states plus Canada; carrier
port/transfer fee, E911 and interna-
tional calling options.
MicroCorp partners can work di-
rectly with their partner managers
to quote Intelepeer voice services for
Spark and Meraki MC offerings, said
the company.
Master Agent Moves and News
6
THE CHANNEL MANAGER’S
PLAYBOOK