Reseller Goliath CDW has acquired the remaining 65 per cent of Kelway, only a month after management swore blind a full-acquisition was definitely not on the cards any time soon.
In a letter sent to staff last month, seen by El Reg, top brass insisted it would be some time before CDW exercised its option to hoover up the remainder of London-based Kelway.
But the companies confirmed the agreement today that sees CDW pay $431m in cash and stock before tranaction fees and expenses, and consolidate roughly $80m of Kelway debt for its 100 per cent stake in the firm.
In a canned statement, Kelway CEO Phil Doye branded the deal a "significant one" and claimed it is the "beginning of an exciting new chapter" for the company.
“We have focused strongly on growth in both the UK and internationally over recent years, and we look forward to continuing that growth as a part of CDW.”
Tom Richards, CDW chief exec said:
“Since our initial investment in Kelway last year, our two companies have worked closely together to support joint customers and partners – a relationship that has been very successful, thanks to our well-aligned cultures.
“Acquiring 100 percent of Kelway accelerates our ability to work together to meet our customers’ growing international needs and continue our path of profitable growth.”
According to sources, Kelway closed off fiscal ’15 with sales a little shy of £600m, up from £527m in the prior year. ®