ScanSource Europe’s future is rumoured to be in serious doubt with multiple sources telling UC Today that the distie could be shuttered.
Senior execs in channel partners, distributors and vendors have said that the new owners appear to be preparing to shut the business down, with an unspecified number of UK employees now in a redundancy process.
Some have spoken of difficulties procuring stock from ScanSource, with one claiming the disties has told its vendors it will not be placing any further orders.
Ten Oaks acquired the European hardware business of ScanSource last November for $30m, leaving the original ScanSource with its North American and cloud business.
The rumours are unverified and both ScanSource Europe and Ten Oaks had not responded to UC Today’s requests for comment at the time of publication.
Sources told UC Today that ScanSource’s competitors have already started to swoop in on the firm's 300-strong employee base.
Ten Oaks acquired the European hardware business last November, over a year after ScanSource first made its plans to offload the unit public. ScanSource had increasingly turned its attention towards software, acquiring cloud disties such as intY.
The private equity firm specialises in “corporate carve-outs” of businesses with under $50m EBITDA, according to its website.
Its other investments include manufacturers in electronics, bathrooms and fridges.
Sources told UC Today that the acquisition raised eyebrows because Ten Oaks does not have an existing distribution business, claiming it would be difficult to keep the operation afloat as a standalone company.
