CDW to Be Acquired for $7.3 Billion
Continuing the resurgence of technology retailers in a complex market, CDW Corp. late yesterday said it agreed to be acquired by Chicago buyout firm Madison Dearborn Partners LLC.</br></br>Madison Dearborn, of Chicago, agreed to acquire CDW for about $7.3 billion, or $87.75 a share. The purchase price represents a 16% premium to CDW's closing stock price of $75.56 a share Friday. CDW shares were up $7.55, or 10%, at $83.11 yesterday in 4 p.m. Nasdaq Stock Market composite trading.</br></br>CDW said its board has approved the deal and said it will urge shareholders to approve the acquisition, which is expected to close near the end of the third quarter or early in the fourth quarter.</br></br>Before approving the agreement, CDW said its board conducted an auction process in which a number of potential bidders participated. Under the agreement, CDW will solicit proposals from third parties during the next 30 days, with the assistance of its financial adviser, Morgan Stanley, a move common in private-equity deals. J.P. Morgan Chase & Co.'s J.P Morgan Securities Inc. and Lehman Brothers Holdings Inc. advised Madison Dearborn.</br></br>CDW is one of the country's largest resellers of computers, software and related equipment, primarily for large corporations and the government. Founded in 1984, CDW reported net income of $266.1 million on sales of $6.79 billion last year.