The Channel logo

News

By | Gavin Clarke 8th March 2013 17:31

Private equity crew prep CDW IPO after $7.3bn buyout - report

Hah! They said we paid too mu.. Oh crap...

The private equity boys are preparing to flip US technology shop CDW back to the market, Reuters reports.

CDW has hired bankers to deliver an IPO later this year, Reuters reports. The financial services firms are reported to be JPMorgan Chase & Co, Barclays and Goldman Sachs Group.

The proposed IPO could raise about $750m, an unnamed source told Reuters, a sum considerably less than equity firms Madison Dearborn Partners and Providence Equity Partners paid when they bought out CDW investors in 2007. The duo paid $7.3bn in cash for a company that distributes hardware, software, PCs and Apple equipment.

The pair bought CDW, one of the USA's biggest tech resellers, at the height of the tech bubble, which finally burst with the collapse of Lehman Brothers and sinking of the global economy in 2008.

At the time, it was felt Madison Dearborn and Providence Equity had overpaid. CRN quoted one unnamed channel partner saying of the deal: "It's dollar-for-dollar revenue. That's insane for a distribution company basically. There's no intellectual property here."

In 2011, CDW was reportedly nearing the point when an IPO would be possible. Sales for 2010 had increased 23 per cent to $8.8bn and the plan was to hire staff. ®

comment icon Read 3 comments on this article alert Send corrections

Opinion

Privacy image

Frank Jennings

Two working parties, ministers galore... but data transfer law remains in limbo
EMC_Unity_bezel

Chris Evans

It does simplify the hardware setup, whatever it is
A microscopic view of the biometric shark skin. Pic: James Weaver

Chris Mellor

Do something and stop faffing about in the bush league

Kat Hall

International system in general needs greater transparency

Features

Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world
hacker
Mostly it's financial crime. Here's what all the cool kids' terms mean in English
Apple logo. Pic: Blake Patterson
Plenty of bumps in the 40-year road for Mac makers