8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported) April 27, 2007

ScanSource, Inc.

(Exact Name of Registrant as Specified in Its Charter)

South Carolina	000-26926	57-0965380
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

6 Logue Court, Greenville, South Carolina 29615

(Address, Including Zip Code, of Principal Executive Offices)

(864) 288-2432

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01. Entry into a Material Definitive Agreement.

On April 27, 2007, ScanSource, Inc. (the “Company”) entered into an Industrial Lease Agreement (the “Lease”) with Industrial Developments International, Inc. (“IDI”), a Delaware corporation, whereby the Company is leasing approximately 600,000 square feet in a building located in Southaven, Mississippi. The leased space will be used by the Company for distribution, warehousing and storage purposes. The lease also provides for a right of first refusal on an additional 147,000 square feet of expansion space. The lease provides for market rental rates and will commence after the construction of the demised premises has been substantially completed (the “Lease Commencement Date”), which is expected to be October 1, 2007. The lease is conditioned upon the Company receiving approval for certain economic development tax incentives from the state of Mississippi. The primary term of the lease is for a period of 120 months from the Lease Commencement Date, and the Company has 2 consecutive 5-year options to extend the lease term beyond the expiration of the primary term. In connection with the entrance into the Lease, the Company also entered into an agreement with IDI giving the Company the option to require IDI to purchase the Company’s existing Memphis, Tennessee facility at an agreed upon market price and upon certain conditions, on or before April 30, 2008. The new distribution center in Southaven, Mississippi will replace the Company’s current 366,000 square foot facility for North American distribution operations located in Memphis. The new distribution center is also located closer to the Memphis regional airport and major freight carrier hubs.

A copy of the Company’s press release regarding the Lease is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release dated April 30, 2007

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ScanSource, Inc.
Date: April 30 2007	By:	/s/ Richard P. Cleys
	Name:	Richard P. Cleys
	Its:	Vice President and Chief Financial Officer

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Exhibit Index

Exhibit No.	Description
99.1	Press Release dated April 30, 2007

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EX-99.1

Exhibit 99.1

[GRAPHIC APPEARS HERE]

For Immediate Release	Contact:	Melissa Andrews, ScanSource, Inc.
April 30, 2007		864.286.4425
		melissa.andrews@scansource.com

SCANSOURCE EXPANDS DISTRIBUTION CAPACITY IN NORTH AMERICA

GREENVILLE, SC – April 30, 2007 – ScanSource, Inc., (Nasdaq: SCSC), a leading international value-added distributor of specialty technology products, has entered into a ten-year lease agreement with Industrial Developments International Inc. (IDI) to relocate its North American distribution center, allowing for expanded warehousing capacity and enhanced storage and logistics resources. The new distribution center, located in Southaven, Mississippi, will accommodate close to 600,000 square feet with an optional additional 147,000 square feet of available expansion space. This new leasehold will replace the current 366,393 square feet used for North American distribution operations in Memphis, Tennessee.

The new location will be even closer to the Memphis airport and major freight carrier hubs and will have no effect on the exceptional Fed-Ex and UPS delivery times ScanSource resellers have come to rely on.

“As our business continues to grow, the need for additional warehouse space has become essential to our distribution and logistics operations,” said Mike Baur, president and CEO, ScanSource, Inc. “We have built our business on the ability to have our vendors’ products in stock and ready to ship and that will only be enhanced through this move.”

ScanSource plans to have its new distribution center in full operation by the first calendar quarter of 2008. The lease is subject to the approval of economic development incentives from the state of Mississippi.

About ScanSource, Inc.

ScanSource, Inc. {NASDAQ:SCSC} is a leading international distributor of specialty technology products. The Company markets specialty technologies through five sales units: ScanSource [automatic identification and data capture (AIDC) and point-of-sale (POS) products]; Catalyst Telecom (Avaya communications products); Paracon (communications products); T2 Supply (video conferencing and telephony products); and ScanSource Security Distribution (electronic security products).

ScanSource serves the North America marketplace and has an international segment, which sells AIDC and POS products, in Latin America and Europe. Founded in 1992, the company ranks #982 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansource.com.

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