(Reuters) - IT solutions provider CDW Corp said on Monday it would buy Sirius Computer Solutions from an affiliate of private equity firm Clayton, Dubilier & Rice (CD&R) for $2.5 billion in cash.
With the acquisition, CDW expects its services portfolio to grow by about 45% and bolster its ability to help clients digitize their operations rapidly.
Founded in 1980, Sirius is an IT solutions integrator that serves clients in the United States and generated net sales of $2.04 billion in 2020.
The transaction would close in December and is expected to immediately increase CDW’s gross margin by about 1.1%, the company said.
CD&R, which backs tech-related firms such as Capco, Cloudera and Epicor, had invested in Sirius in 2019.
Evercore served as a financial adviser to CDW, while CD&R and Sirius were advised by Guggenheim Securities.
Reporting by Chavi Mehta in Bengaluru; Editing by Shounak Dasgupta and Ramakrishnan M.
Source: Reuters