Acquisition broadens CDW Canada’s solutions portfolio, deepens technical skillset and extends geographic reach
LINCOLNSHIRE, Ill. – CDW (NASDAQ: CDW) today announced its agreement to acquire Scalar Decisions Inc., a leading technology solutions provider in Canada with locations across the country and trailing 12-month sales of approximately C$250 million.
“Helping customers optimize the value of their IT investments is core to our mission,” said Chris Leahy, Chief Executive Officer, CDW. “This strategic acquisition extends our CDW Canada solutions and services portfolio, extends our in-market presence across Canada and enhances the value that we can deliver to our customers.”
Scalar, founded in 2004, serves more than 900 customers and works with more than 150 partners. With a solutions-based approach and a reputation for solving complex technology challenges, Scalar will enhance CDW Canada’s technical capabilities and expertise in areas such as professional and managed services, infrastructure, security and cloud. The company has been widely recognized for its growth and industry leadership, receiving the prestigious Canada’s Best Managed Companies designation from Deloitte, being named one of Canada’s fastest growing businesses by “Canadian Business” and gaining recognition as one of the Top 100 Solutions Providers by “Computer Dealer News.”
“Joining CDW Canada is a huge win for our customers and our coworkers,” said Paul Kerr, President and Chief Executive Officer, Scalar. “In CDW Canada we found shared values with a customer-first focus and a solutions-led approach.”
“We are thrilled to welcome the Scalar team to CDW Canada,” said J.D. Hupp, Vice President and General Manager, CDW Canada. “Together, we will continue to create value for our customers as we leverage each other’s strengths.”
The acquisition is expected to close in first quarter 2019, pending regulatory approvals. Until the deal is complete, both companies will continue to operate separately. Terms of the transaction were not disclosed. Scalar is not expected to have a material impact on CDW’s 2019 Non-GAAP earnings per share.
CDW is a leading multi-brand technology solutions provider to business, government, education and healthcare organizations in the United States, the United Kingdom and Canada. A Fortune 500 company with multi-national capabilities, CDW was founded in 1984 and employs more than 8,900 coworkers. For the trailing twelve months ended September 30, 2018, the company generated net sales of approximately $16 billion. For more information about CDW, please visit www.CDW.com.
Statements in this release that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the ability to complete the transaction and the expected timing for closing; the expected benefits of the transaction; and any statements regarding the plans, strategies and objectives for the transaction. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although CDW believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions “Forward-Looking Statements” and “Risk Factors” in CDW’s Annual Report on Form 10-K for the year ended December 31, 2017 and subsequent filings with the SEC. CDW undertakes no obligation to update or revise any of its forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.
Scalar is Canada’s leading IT solutions provider, focused on security, infrastructure, and cloud. Founded in 2004, Scalar is headquartered in Toronto, with offices in Montreal, Ottawa, Winnipeg, Calgary, Edmonton, Vancouver, and Victoria. Scalar was recently named one of Canada’s Best Managed Companies, named to CRN’s 2018 Solution Provider 500 List, and listed on the Growth 500 for the ninth year running. In addition, Scalar was deemed a major player in the IDC MarketScape for Canadian managed security service providers and ranked the #1 ICT security company on the 2014 -2018 editions of the Branham 300. For further details, visit www.scalar.ca or follow Scalar on Twitter, @scalardecisions.