ScanSource To Buy POS Portal - Quick Facts

(RTTNews) - ScanSource, Inc. (SCSC) announced a definitive agreement to acquire POS Portal, a distributor of payment devices and services primarily to the SMB market segment. The all-cash deal includes an initial purchase price of approximately $144.9 million, plus an earn-out payment up to $13.2 million to be made on November 30, 2017. ScanSource expects the acquisition to be accretive to earnings per share in the first year after acquisition, excluding one-time acquisition costs.

Based in Sacramento, California, POS Portal offers its resellers payment terminals, comprehensive key injection services, reseller partner branding, extensive encryption key libraries, ability to provide P2PE encryption, and redundant key injection facilities. For the first full year after closing, POS Portal net sales are estimated to total approximately $110 million with an estimated EBITDA margin in the low teens.

Stryker and Scott Agatep, Chief Operating Officer, along with the POS Portal team, will join ScanSource and provide the leadership. Upon completion of the transaction, POS Portal will become part of the Worldwide Barcode, Networking and Security segment of ScanSource.