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Wheelings & Dealings: ScanSource Acquires Cisco Video Conferencing Channel Specialist

August 21, 2015

ScanSource is planning to acquire KBZ, a Cisco Authorized Distributor specializing in video conferencing, cloud and services.

Based in Doylestown, Pennsylvania, KBZ provides video conferencing products services with its ZCare offering, and has a specialized public sector team to accelerate sales within the federal, state and local government sector.

The company was formerly Tandberg’s largest distributor prior to its 2009 acquisition by Cisco; it now focuses its business exclusively on video conferencing from Cisco and complementary vendors. It brings extensive Cisco certifications to the table, and was named Cisco Americas Collaboration Distributor of the Year in 2014 and Cisco Americas Cloud Distributor of the Year in 2015.

Like ScanSource itself, KBZ has a focus on providing value-added services and support for its reseller partners—just in a niche environment. It has an existing regional alignment of sales teams that provides continued interaction with resellers and Cisco sales, which will remain in place.

Terms of the deal were not disclosed. The company’s sales for the trailing 12 months, ended June 30, are estimated to total over $225 million, and it has approximately 75 employees. KBZ’s VP Kyle Zorzi, along with the KBZ team, will join ScanSource.

“We are very committed to the Cisco business at ScanSource and are excited about the opportunities for growth for our partners through the planned acquisition of KBZ,” said Mike Baur, CEO at ScanSource. “KBZ brings extensive experience in all of Cisco’s premise and cloud solutions, including video conferencing and services. We look forward to having Kyle and all of the KBZ employees as a part of the ScanSource team.”

ScanSource is savvy to beef up its video conferencing chops. Aside from demand for it on a standalone basis, it has become an important part of unified communications suites. MarketsandMarkets said that the UCaaS market alone is expected to growing at a 10.5 percent CAGR between now and 2020, for instance, with video acting as a big factor in adoption.

Edited by Dominick Sorrentino

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