ScanSource, Inc., the leading international value-added distributor of specialty technology products, through its wholly-owned subsidiary, ScanSource do Brasil Participações Ltda, has entered into a definitive purchase agreement with CDC Brasil, S.A., Brazil’s leading distributor of AIDC and point-of-sale solutions.

CDC Brasil is a value-added distributor that sells only to resellers and offers many of the same industry-leading products that ScanSource, Inc. provides.

Elias Botbol, president of ScanSource Latin America, said Brazil has been the missing piece in the firm’s Latin America strategy and to complete that puzzle with CDC Brasil is very exciting for ScanSource.

According to Botbol, in-country representation allows ScanSource to more easily scale, as well as manage complicated import processes, tax structures, and IT system requirements. With Brazil, ScanSource will now have full Latin America coverage, said Botbol.

The transaction is structured as an all cash share purchase with an initial cash payment and annual earn-out through June 30, 2015. Under the terms of the Agreement, ScanSource will make an initial purchase price payment of R$57,300,000 (approx. $35, 400,000) and assume working capital debt at closing. As of March 31, 2011, CDC’s debt, net of cash, was R$1,900,000 (approx. $1,200,000).

The experienced Brazilian management team of CDC Brasil will remain in place, becoming management of ScanSource do Brasil. This management team, which founded the company in 2003, has more than 55 years of industry experience and has grown CDC Brasil to be the leading distributor in Brazil. Current CDC Brasil president, Alexandre Conde, will be named president of ScanSource Brasil and will report to Elias Botbol, president of ScanSource Latin America.

Mike Baur, CEO, ScanSource Inc., said the Brazilian market represents a great opportunity for ScanSource. Because of Brazil’s unique business climate and high growth potential in ScanSource’s industry, ScanSource felt important to have an in-country presence, said Baur.

Baur reiterated that CDC Brasil is a perfect fit for ScanSource. According to him, CDC is extremely well respected by their customers and vendors have a management culture similar to ScanSource and are a very profitable company with great growth potential.

The remaining purchase price paid in annual cash installments will be based upon the annual financial performance of CDC Brasil during the earn-out period. The potential total purchase consideration of the business without assuming any increase or decrease in earnings is approximately R$103,000,000 (approx. $63,600,000). CDC Brasil has offices in Sao Paulo, Curitiba and Recife.