CDW Corporation Set to Acquire Sirius Computer Solutions For $2.5B

Two powerful IT and computer solutions companies announced a deal on October 18 that will bolster their offerings in the sector.

CDW Corporation (Nasdaq: CDW) is set to acquire Sirius Computer Solutions, Inc. from an affiliate of private equity company Clayton, Dubilier & Rice for $2.5 billion in cash.

CDW is a $20 billion multi-brand IT solutions company serving the business, government, education and healthcare sectors. Sirius is a “leading provider of secure, mission-critical technology-based solutions” and “one of the largest IT solutions integrators in the United States” with net sales in 2020 reaching approximately $2 billion, according to the filing.

The acquisition is aimed to enhance the technology company’s services and capabilities in areas like “hybrid infrastructure, security, digital and data innovation, and cloud and managed services.”

The transaction will also scale and diversify CDW’s services by increasing by $400 million to total approximately $1.3 billion in combined annual net sales. Its gross margins will increase by 110 basic points, according to the companies. It is also expected to increase CDW’s EPS and free cash flow to fulfill its capital allocation priorities.

The deal is expected to close in December 2021 pending regulatory approval and other customary closing conditions.  

CDW is represented by Sidley Austin LLP and Evercore is its financial advisor. Sirius and Clayton, Dubilier & Rice represented by Kirkland & Ellis LLP and Guggenheim Securities, LLC is the financial advisor.

This acquisition comes after CDW recently purchased cybersecurity firm Focal Point Data Risk for an undisclosed amount in August of this year.

Before the announcement CDW’s stock price on Friday, October 15 was $177.72 and on the day of the announcement stock closed on $186.23 and more than a week later on October 27, stock closed on $184.37; following the announcement, stock peaked at $191.54 on October 25.