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Madison Dearborn to buy CDW for $7.3bn30/05/2007. Source: AltAssets. 
 The US PC and technology supplier CDW Corporation has signed a definitive merger agreement to be acquired by Chicago-based private equity firm Madison Dearborn Partners in a deal valued at approximately $7.3bn.
Under the terms of the agreement, CDW shareholders will receive $87.75 in cash for each share of CDW common stock they hold, representing a premium of approximately 16.1 per cent over CDW's closing share price of $75.56 on May 25, 2007, a premium of approximately 31.4 per cent over the average closing share price during the previous 90 trading days.
CDW’s Board of Directors have approved the merger agreement and will recommend that CDW’s common shareholders approve the transaction.
Benjamin D Chereskin, a managing director for MDP said, 'CDW is an exceptional company of talented and dedicated coworkers led by an outstanding management team. We look forward to investing in the company’s future growth and continuing to build upon its history of success while preserving its unique coworker and customer-focused culture.'
'CDW’s coworkers have created an extraordinary industry-leading organisation since its founding in 1984 and initial public offering in 1993,' added John A Edwardson, CDW chairman and chief executive officer. 'This transaction represents the next chapter for CDW. We believe it provides a compelling opportunity to immediately maximize value for our shareholders. 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.'
Before approving the merger agreement, CDW's board of directors conducted an auction process in which a number of potential bidders participated. Completion of the transaction, which is subject to the approval of CDW shareholders, regulatory approvals and customary closing conditions, is expected near the end of the third quarter of 2007 or early in the fourth quarter of 2007.
CDW sells technology solutions - brands such as Acer, Adobe, APC, Apple, Cisco, Fujitsu, HP, IBM, Lenovo, Microsoft, Panasonic, Quantum, Samsung, Sony - to business, government and education. CDW was founded in 1984 and employs approximately 5,640 staff. In 2006, the company generated sales of $6.8bn.
Madison Dearborn Partners has $14bn of equity capital under management and is making new investments through their most recent fund, Madison Dearborn Capital Partners V, a $6.5bn investment fund raised in 2006. MDP focuses on management buy-out transactions and other private equity investments across a range of industries, including basic industries, communications, consumer, financial services, and health care.
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