CDW Bought for $7.3 Billion
Technology products reseller CDW (CDWC) said late Tuesday that it has agreed to be bought by private-equity firm Madison Dearborn Partners for $7.3 billion in cash.
Under terms of the deal, CDW shareholders will receive $87.75 in cash for each share of common stock.
That represents a premium of approximately 16.1% over CDW's closing share price of $75.56 on May 25, 2007, the company said.
CDW's board of directors will recommend that CDW shareholders approve the deal, which is expected to close near the end of the third quarter or early in the fourth quarter of this year.Shares of the company, which rose 12% before the regular session opened, on speculation about private equity firms in serious talks about a buyout of the company, closed up 10% and then recently gained 4.7% in after-hours trading. CDW, which resells PCs, software and tech-related equipment mainly to business, government and education customers, is being advised by Morgan Stanley (MS). Chicago-based Madison Dearborn Partners manages more than $14 billion of equity capital under management. Vernon Hills, Ill.-based CDW is expected to announce details on a conference call Wednesday at 9:00 a.m. EDT.
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