ScanSource today announced the execution of a letter of intent to purchase the assets of KBZ, a Cisco Authorized Distributor.
Founded in 1987 and based in Doylestown, Pennsylvania, KBZ operates in the United States and has approximately 75 employees. The company’s sales for the trailing twelve months ended June 30, 2015 are estimated to total over $225 million. The acquisition is expected to be accretive to earnings per share and ROIC in the first year after closing, excluding one-time acquisition costs.
KBZ, formerly Tandberg’s largest distributor prior to its 2009 acquisition by Cisco, focuses its business exclusively on Cisco and complementary vendors. KBZ provides scale, video conferencing expertise, and services success with its ZCare offering to expand ScanSource’s business with Cisco. KBZ also brings a specialized public sector team to accelerate sales to Federal, state and local governments. Like ScanSource, KBZ has a focus on providing value-added services and support for its reseller partners. Their regional alignment of sales teams provides continued interaction with resellers and Cisco sales teams. KBZ’s sole goal is to help resellers be successful in selling Cisco – they do this by empowering collaboration through a focus on business, technology and expertise. With extensive Cisco certifications, the KBZ team offers the industry’s highest level of technical expertise to resellers. KBZ was named Cisco Americas Collaboration Distributor of the Year in 2014 and Cisco Americas Cloud Distributor of the Year in 2015.
KBZ’s Vice President Kyle Zorzi, along with the KBZ team, will join ScanSource. Mr. Zorzi joined KBZ in 2001 and currently oversees all sales and operations for KBZ, working closely with Cisco channel management teams to develop future business opportunities, strategic partnerships and best practices for partner development, partner and sales teaming, and value-added service offerings. Mr. Zorzi will serve as Senior Vice President of KBZ, a ScanSource Company. The company’s Owner and Founder, Ken Zorzi, will retire from the business.
“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. Ken and Kyle Zorzi have grown KBZ to be a leading Cisco distributor, and Kyle will be instrumental to the continued success of the business,” said Mike Baur, CEO, ScanSource, Inc. “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.”
“I’m very excited and proud to be a part of and contribute to the evolution of KBZ over the past 15 years. It has been a very special and unique opportunity for me to be able to work side-by-side with my father and build such an amazing successful company together,” said Kyle Zorzi. “We have a very special team of hard-working, dedicated, passionate people who love the technology and who go above and beyond every day for Cisco and our customers. I look forward to continuing our commitment to Cisco and our customers under ScanSource, as I believe they are the perfect fit for KBZ.”