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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Market indexes 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. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.