US-based ScanSource has agreed to acquire POS Portal, a distributor of payment devices and services, as part of its strategy to expand its POS business.
The all-cash transaction includes an initial purchase price of nearly $144.9m and an earn-out payment up to $13.2m to be made on 30 November 2017.
ScanSource mainly focuses on the enterprise and mid-market merchant segments, with thousands of POS value-added resellers (VARs) and system integrators as customers.
POS Portal serves the SMB merchant segment via strong relationships with the payment processors, independent sales organisations (ISOs) and tablet-based POS software developers.
ScanSource CEO Mike Baur said: “The acquisition of POS Portal uniquely positions ScanSource as a market leader in both the POS and payments channels. POS Portal brings an excellent customer service reputation, highly regarded value-added services, and vast knowledge of the payments industry.
“Together, we will provide greater business opportunities for our solution delivery channels. The tremendous culture fit between POS Portal and ScanSource will be exciting for our employees and customers.”
Once the transaction is completed, POS Portal will become part of the Worldwide Barcode, Networking and Security segment of ScanSource.
POS Portal co-founder and CEO Buzz Stryker and COO Scott Agatep along with the POS Portal team will join ScanSource.
Subject to the satisfaction of customary closing conditions and regulatory approvals, the acquisition is likely to conclude during the quarter ending 30 September 2017.