CDW Corporation (Nasdaq: CDW) (“CDW” or “Company”), a leading multi-brand provider of information technology solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada, today announced that it has completed the acquisition of Sirius Computer Solutions, Inc. (“Sirius”), a leading provider of secure, mission-critical technology-based solutions, for $2.5 billion in cash, subject to certain adjustments. The transaction is expected to accelerate and enhance CDW’s services and solutions capabilities in key growth areas, including Hybrid Infrastructure, Security, Digital and Data Innovation, and Cloud and Managed Services, as well as add services scale, further balancing and diversifying CDW’s portfolio mix with enhanced profitability.
“We are excited to officially welcome the talented Sirius team to CDW. Through this transaction, we meaningfully expand and scale our services and solutions capabilities and further enhance our ability to solve customers’ increasing interconnected and complex technology challenges,” said Christine A. Leahy, president and chief executive officer, CDW. “The addition of Sirius strengthens our role as the trusted technology advisor to our customers, with the expertise and portfolio breadth, depth and scale to orchestrate complete customer-centric outcomes across the full technology solutions stack and lifecycle. I am confident in our ability to leverage our common values and collective unparalleled expertise to deliver the best customer and partner experiences and create value for CDW shareholders.”
Sirius President and Chief Executive Officer Joe Mertens said, “CDW and Sirius share common values and a commitment to delivering an outstanding customer experience. Together, we will have the ability to broaden our reach and deliver even more value to our customers, who we expect to benefit substantially from the accelerated services and solutions mix, scale and efficiency of the combined company.”
As previously announced, the transaction is expected to deliver gross margin, non-GAAP operating income (NGOI) margin1, and non-GAAP earnings per diluted share2 accretion. CDW has raised permanent financing for this transaction and has an initial net leverage ratio of approximately 3.3x3. The Company will continue to target deleveraging to approximately 2.5x to 3.0x by the end of 2022 in alignment with its capital allocation priorities.