CDW agrees to $7.3B buyout

Computer technology retailer defends private equity deal, saying it is the next chapter for the firm.


NEW YORK (CNNMoney.com) -- Computer technology retailer CDW Corp. said Tuesday it has agreed to be purchased by a private equity firm for approximately $7.3 billion, following speculation that a sale was forthcoming.

The Vernon Hills, Ill. firm said that its sale to Madison Dearborn Partners (MDP) represented the "next chapter for CDW".

"We believe it provides a compelling opportunity to immediately maximize value for our shareholders," John A. Edwardson, CDW chairman and chief executive officer, said in a statement. "We are pleased to partner with the world-class investment firm of MDP, whose investment goals are closely aligned with our strategy and long-term objectives."

As part of the deal, CDW shareholders will receive $87.75 in cash for each share of CDW common stock they hold, a 16.1 percent premium to last Friday's closing price.

CDW (Charts, Fortune 500) shares edged lower in after-hours trading after soaring 10 percent Tuesday on the Nasdaq on speculation that a deal would be announced. Top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.