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ScanSource CEO On Taking A 'Risk' With Watershed Intelisys Deal And Sacrificing Top Line To Drive Profitable Recurring Revenue

ScanSource CEO Mike Baur spoke with CRN about why the transition to recurring revenue has been such an obstacle for solution providers and how his company's purchase of Intelisys will change ScanSource's balance sheet.

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Changing the Channel

In a deal that ScanSource CEO Mike Baur (pictured) refers to as "heavenly," the large IT distributor announced Monday that it would acquire Petaluma, Calif.-based Intelisys for $83.6 million plus earn-outs.

The deal marks the first time an IT distributor has purchased a master agency. Baur predicts it won't be the last merger between an IT distributor and a master agent, either.

Baur sat down with CRN and shared why the transition to recurring revenue has been such an obstacle for VARs, how the Intelisys purchase will change ScanSource's balance sheet, and his plans to transform the VAR channel by educating partners on the long-term value of recurring revenue, with the help of the Intelisys team.

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