ScanSource first entered the recurring revenue business by scooping up Petaluma, Calif.-based master agent Intelisys in 2016. Now the combined IT distributor and master agent revealed on Monday that it bought the channel business of another master agent, Kingcom.
Bringing in that part of Kingcom, a Verizon-exclusive master agency, will deepen the relationship between Verizon and the agent partner community. The acquisition was completed through ScanSource’s subsidiary, Intelisys. Terms of the deal were not disclosed.
Portland, Ore.-based Kingcom is a Verizon Platinum Partner that has been arming VARs, MSPs, integrators, and telecom agent partners with Verizon's business products and services, including voice, network, cloud, and security since 2002.
The investment by ScanSource and Intelisys is a testimony to work that the two companies are doing around helping VARs get into carrier services and recurring revenue, Janet Schijns, vice president of global channels for Verizon, told CRN.
"ScanSource's investment indicates the coming of the VARs," Schijns said.
“As Verizon continues to focus on the channel, it’s imperative our sales partners are ready and able to most effectively sell and support these services offerings,” said Jay Bradley, president of Intelisys, said in a statement.
Greenville, S.C.-based ScanSource dove headfirst into the telecom market when it acquired Intelisys for $83.6 million, plus earn-outs, in August. The distributor has since been working side by side with Intelisys to help its VAR partners start their own connectivity practices to build recurring revenue.