CDW acquires US solutions provider giant for $2.5bn

Reseller claims the acquisition will grow its services portfolio by roughly 45 per cent

Reseller giant CDW has announced that it will acquire technology solutions provider and integrator Sirius Computer Solutions for $2.5bn from an affiliate of private equity firm Clayton, Dubilier & Rice.

It claims the acquisition will "significantly accelerate CDW's services and solutions capabilities and further enhance its "ability to solve customers' increasingly interconnected and complex technology challenges".

Texas-based Sirius serves around 3,900 large and mid-sized customers and is one of the largest IT solutions integrators in the United States. It generated 2020 net sales of $2.04 billion, while the combined company would have had 2020 net sales of $20.5 billion, CDW said.

"As customers require increasingly complex and critical digital transformation initiatives, Sirius' broad portfolio of world-class technology-based solutions and services-led approach will immediately add to our capabilities to meet this demand," said Christine Leahy, president and chief executive officer, CDW.

"Combining our businesses will accelerate progress on our three-part growth strategy by augmenting our portfolio and enhancing our ability to deliver customer-centric outcomes across the full technology solutions stack and lifecycle.

"We look forward to welcoming the talented Sirius team and leveraging our common values and collective unparalleled expertise to deliver the best customer experience and create value for CDW shareholders."

CDW claims the acquisition will grow its services portfolio by roughly 45 per cent from approximately $900m annual net sales in 2020 to around $1.3bn while expanding its offering in "key growth areas" such as hybrid infrastructure, security and cloud.

The Illinois-based software, solutions and services provider, which also operates in the UK, says the acquisition is expected to "deliver immediate margin and EPS accretion" and generate more free cash flow.

Sirius president and CEO Joe Mertens said: "Today is an exciting day for Sirius. We have long admired CDW and welcome the opportunity to bring our complementary services and solutions capabilities to serve a broader market of customers as a combined company.

"Sirius and CDW share common values and a performance-driven, customer-focused culture.

"We look forward to the opportunity to combine Sirius' considerable talents with CDW's, and to being part of a larger, stronger organisation that will be even better positioned for growth in the evolving IT services and solutions landscape."

The transaction is subject to customary closing adjustments and is expected to close in December 2021.