ScanSource Restructures Communications Unit in Europe, to Cut Jobs, Sees $1.2M in One-Time Costs

ScanSource, Inc. SCSC, the leading international value-added distributor of specialty technology products, today announced the restructuring of its Communications business unit in Europe to support a pan-European strategy for profitable growth. The restructuring includes new leadership and also provides cost savings from the elimination of positions and the centralization of support services. In support of this new structure, ScanSource has named Rudy De Meirsman as Managing Director for ScanSource Europe Communications, a newly-created position. Mr. De Meirsman is responsible for implementing a pan-European strategy for the Communications business unit and leading a focused, dynamic team. He reports to Buck Baker, Interim President of ScanSource Europe. Mr. De Meirsman joined ScanSource in 2010 and previously served as the Senior Director of Merchandising for ScanSource's Communications business unit in Europe. He has over 20 years of experience in technology distribution, including sales and marketing leadership positions with Plextor Europe and distributor Tech Data. “Rudy has proven himself as a leader with the experience we need to take the next step in our Communications business in Europe. These moves will provide focused leadership and operational efficiencies, as we continue to implement our pan-European strategy to serve our key partners, including Avaya, Extreme, LifeSize, and ShoreTel,” said Baker. The restructuring includes the elimination of positions to set the cost structure in line with current operations and move to more global shared support services. The organizational structure provides focused business unit leadership, as well as dedicated merchandising, sales and technical support teams, at a scale for profitable growth. In addition, ScanSource will move certain European support functions to centralized global teams in the United States to gain efficiencies. The annualized cost savings in connection with the restructuring, principally associated with the elimination of positions, are estimated to be approximately $3.1 million. The Company expects to incur approximately $1.2 million in associated one-time costs, which include related severance expenses, during the quarter ending March 31, 2013.