ScanSource flogs European operation for $30m
European president Maurice van Rijn opens up on split from ScanSource’s North America business
ScanSource Europe has become an independent company after splitting from its US parent in a $30m sale.
The US distributor first announced plans to sell off its hardware business across Europe, Latin America and South America in August 2019. It said the combined assets up for sale are worth $623m in annual revenues with the majority of that stemming from Europe.
It later found a home for its product business across Latin and South America this summer in the shape of Intcomex, but the search for a buyer for its European business continued.
Now, after a 15-month search, ScanSource has announced that it closed a deal on 12 November to sell its European hardware business for $30m.
Speaking to CRN sister title Channel Partner Insight, ScanSource's European president Maurice van Rijn said the company's new owner is a US-based private investor called Ten Oaks Group.
The family-run firm claims to specialise in investing in corporate divestitures and targets businesses with less than $50m in EBITDA.
Ten Oaks Group assumes ownership of all of ScanSource's European hardware operations which consists of around 300 employees and specialises in point-of-sale and communications solutions.
The deal does not include the cloud-based intY business, which ScanSource acquired in 2019 and is based in Bristol in the UK.
The investor will not take an active role in running the business, said van Rijn, who said the new company will be led by its existing European management team.
Van Rijn will lead sales and operations of the newly independent ScanSource Europe while Philippe Possamai will lead finance and Nick Bridgland will continue as head of legal.
The new entity will have its headquarters in Brussels, Belgium.
Van Rijn said that the business will continue to go to market as ScanSource Europe for the time being, but said that the firm will change its branding, and launch a new business strategy, following a "transition period".
He said the news has been met with positivity from ScanSource's vendor partners and customers.
"Looking at the reactions from customers and vendors, everybody feels good about this. From the vendor side - in IT and the communications market there has been a huge amount of consolidation in recent years, which completely disrupts the distribution landscape. So the good thing for the vendor is the distribution landscape stays as it is, which is predictable for them.
"They know what ScanSource Europe stands for and they see that as the core of what will be continued."
The European president said that ScanSource has been operating as normal during its parent company's 15-month search for a buyer, which was further delayed by the COVID pandemic.
"But during that period we've carried on executing for the customers as they expected and didn't let it interrupt our service level. That's a great achievement and I have to say thanks to the employees and that we really appreciate the loyalty from our customers and our vendors.
"The key thing is that we continue the business and grow. That is always the ambition and now we get the chance to use that potential to its full extent, which we haven't had over the last 15 months. I am glad we can now get our hands on the job and get it done."