Publicly traded computer wholesaler CDW, Vernon Hills, Ill., a major supplier of computers and servers to healthcare and other industries, has announced it has accepted a buyout offer from Chicago-based venture capital firm, Madison Dearborn Partners, in a deal valued at $7.3 billion.
CDW shareholders will receive $87.75 per share of common stock, a premium of slightly more than 16% over the $75.56 closing price of CDW shares last Friday, and a 31.4% bump from the average closing price for the stock for the 90-day period prior to last Friday, according to a CDW news release issued yesterday. The 23-year-old company reported $6.8 billion in sales in 2006 and has about 5,640 employees.
Madison Dearborn Partners manages more than $14 billion of equity capital and last year raised $6.5 billion in new investment funds. The company has invested in myriad businesses and industries, from several franchise restaurant groups to a Christian bookstore chain to several healthcare organizations. It currently is an investor in Team Health Holdings, Knoxville, Tenn., a provider of staffing, teleradiology and hospitalist services; and Sirona Dental Systems, Bensheim, Germany, a dental equipment manufacturer, according to the Madison Dearborn Partners Web site.
The deal is subject to approval by regulators and CDW shareholders, and CDW founder Michael Krasny, who "controls directly or indirectly" 22% of CDW stock, will support the buyout bid, according to the company. Closing is expected near the end of the third quarter or early in the fourth quarter of 2007, the company said.