martinwolf
Transaction Analysis
CDW To Acquire Scalar Decisions Inc.
Financial Information*
- Scalar LTM Revenue C$250M
Transaction Facts
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Leading global IT solution provider CDW announced today it had an agreement to acquire Scalar Decisions, a major Canadian solution provider.
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Details of the transaction were not disclosed, but according to the press release Scalar's LTM revenue totalled C$250 million--compared with CDW's LTM revenue of US$13.4 billion.
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The transaction is expected to close in the first quarter of 2019 pending regulatory approval, with the companies operating separately until the deal is complete.
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This acquisition is not expected to have a material impact on CDW's 2019 non-GAAP earnings per share.
- Doubling Down: CDW is already a major player in the Canadian market--CDW Canada appeared at the top of the CDN 2018 Top 100 Solution Provider list, its fifth consecutive time heading the list. Scalar also is a significant presence--the company was No. 8 on CDN's most recent list and was named Storage Provider of the Year. While CDW does not specifically break out Canadian revenue, its combined Canada and UK revenue totaled $1.6 billion in its most recent annual report.
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 Bigger and Better: In statements shared with the media following the transaction announcement, CDW spotlighted the acquisition as adding both geographical coverage and technical expertise--particularly regarding managed services, cloud and security.
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Quality, not Quantity: CDW is not a serial acquirer. The company most recently acquired Kelway, a London-based solution provider, in a two-part transaction where it first acquired 35 percent in 2014 and 65 percent in 2015 (earlier than expected). Today, CDW is the fourth-largest reseller in the UK following Computacenter, Softcat and BT.
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Making an Impact: Longtime CDW CEO Tom Richards retired as of Jan. 1, elevating then-CRO Christine Leahy to the position. His is an accomplished history--he created more shareholder value than his closest competitors combined. When nominated to the position Chris promised "business as usual"--a focus on profitability, customer relevance and delivering value to shareholders. In the press release announcing this transaction, she emphasized Scalar's ability to "enhance the value [CDW] can deliver to our customers."
For more information about this transaction,
click here to read the press release.
*Financial information from FactSet and the press release.
martinwolf was
not the advisor in this transaction.
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Headquartered in Scottsdale, Arizona with an office in New York, martinwolf is a leading M&A Advisory focused on middle market companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 160 transactions in over 20 countries and sold eight divisions of Fortune 500 companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com. To learn more about martinwolf, contact Matthew Putzulu at [email protected] © martinwolf 2019 |
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