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CRN Exclusive: ScanSource CEO On How Consolidation Is Impacting Distribution

Value-added distributors are in many ways becoming more like broadline distributors, even as broadline distributors are becoming more like value-added distributors, ScanSource CEO Mike Baur told CRN.

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Of the six growth opportunities you talked about on the conference call, one of them is point of sales, which is the focus of Ingram Micro’s acquisition of The Phoenix Group. Did that acquisition push ScanSource to focus more quickly on new opportunities for channel partners?

We have always led the way. We acquired POS Portal before Ingram Micro acquired The Phoenix Group. So we were very cognitive of the potential competitive landscape when we acquired POS Portal. In fact POS Portal was competing with The Phoenix Group for many, many, many years. So really nothing has changed there. We believe that when a broadline player enters our space, this validates [that] it must be a great opportunity. And we always look at that as, 'Hey, we definitely made a good decision if these guys are now going to put their investment dollars there too.'

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