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Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →CDW completed its acquisition of Sirius Computer Solutions on December 1, 2021, adding a large, services-led IT integrator to its business. CDW announced the closing on December 2. The announced cash price was $2.5 billion, subject to customary closing adjustments; CDW later reported approximately $2.4 billion paid net of cash acquired.
What CDW agreed to buy—and what it paid
CDW announced the agreement on October 18, 2021, to acquire Sirius from an affiliate of Clayton, Dubilier & Rice. The announced consideration was $2.5 billion in cash, subject to customary closing adjustments. The transaction closed on December 1, 2021, according to CDW’s annual filing; the company announced completion the following day.
CDW’s 2021 Form 10-K reported approximately $2.4 billion in aggregate consideration paid, net of cash acquired, and $35 million in transaction costs. It also said CDW issued $2.5 billion in senior unsecured notes to finance the acquisition and related transaction costs. These figures describe different aspects of the transaction: the $2.5 billion was the announced cash price, while the approximately $2.4 billion filing figure was net of cash acquired.
What Sirius added to CDW
CDW characterized Sirius as a large U.S. IT solutions integrator with a services-led approach and a broad hybrid-infrastructure portfolio. At announcement, Sirius was described as serving approximately 3,900 large and mid-sized customers and employing 2,600 coworkers. CDW reported Sirius’s 2020 net sales as $2.04 billion.
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The announced capability areas were:
- Hybrid infrastructure
- Security
- Digital and data innovation
- Cloud and managed services
CDW’s stated strategic rationale was to expand its services capabilities, broaden its reach, further balance and diversify its portfolio, and help customers address interconnected technology challenges. Those statements explain management’s reasons for the deal; they do not, on their own, demonstrate the acquisition’s subsequent financial or operational results.
What CDW projected for the combined business
In its October 2021 announcement, CDW used combined 2020 results as the basis for several forecasts. The figures below were management projections, not reported post-acquisition outcomes.
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| Measure | October 2021 projection | Basis and qualification |
|---|---|---|
| Annual services net sales | Approximately $1.3 billion combined, versus approximately $900 million for CDW alone | Combined 2020 basis; CDW described the change as an approximately 45% expansion. |
| Gross-margin accretion | Approximately 110 basis points | Management projection in the October 2021 announcement. |
| Non-GAAP operating-income margin accretion | Approximately 20 basis points | Management projection in the October 2021 announcement. |
| Non-GAAP earnings per share | Accretion projected | The announcement did not state a figure in the cited material. |
The cited materials do not establish whether the projected Sirius-specific margin and earnings-per-share accretion was ultimately achieved. The forecasts should therefore be read as deal-era expectations, not as evidence of realized results.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What “expand and scale” meant
At closing, CDW president and CEO Christine A. Leahy said: “Through this transaction, we meaningfully expand and scale our services and solutions capabilities and further enhance our ability to solve customers’ increasing interconnected and complex technology challenges.” The phrase described the intended strategic effect: adding Sirius’s people, customer relationships, technical expertise, and named service areas to CDW’s existing portfolio. Whether that expanded capability translated into the projected financial gains is a separate question from whether the acquisition closed.
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Sources
- CDW’s October 18, 2021 announcement of the Sirius acquisition
- CDW’s December 2, 2021 closing announcement
- CDW’s 2021 Form 10-K
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