Mergers and Acquisitions, Mergers and Acquisitions, Content

CDW Acquires ServiceNow Partner Scalar for Canadian IT Services Push

CDW is acquiring Scalar Decisions Inc., a well-known ServiceNow solutions provider that generated more than C$250 million  (US$188 million) in sales over the past 12 months. The acquired business has nearly 350 employees in nine offices across Canada. Financial terms were not disclosed.

Scalar, founded in 2004, will enhance CDW Canada’s technical capabilities and expertise in areas such as professional and managed services, infrastructure, security and cloud, CDW asserts.

Paul Kerr
Paul Kerr
Chris Leahy, CEO, CDW

In a prepared statement, CDW CEO Chris Leahy said:

“Helping customers optimize the value of their IT investments is core to our mission. This strategic acquisition expands 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.”

Added Scalar CEO Paul Kerr:

“Joining CDW Canada is a huge win for our customers and our coworkers. In CDW Canada we found shared values with a customer-first focus and a solutions-led approach.”

CDW Business Growth

CDW has been in growth mode. Net sales were $4.37 million in the Q3 of 2018, up 11.2 percent from the corresponding quarter in 2017, according to a financial report released in October 2018. Also, net income was $184 million in the third quarter of 2018, compared to $129 million in the third quarter of 2017, CDW said at the time.

The sales and net income figures largely beat Wall Street's expectations at the time, SeekingAlpha reported.

The Scalar acquisition is expected to close in first quarter 2019, pending regulatory approvals. Until the deal is complete, the companies will continue to operate separately, the two firms said.

ServiceNow Partners: Mergers and Acquisitions

M&A activity involving ServiceNow partners has been strong. Example deals ChannelE2E has tracked include:

For its part, ServiceNow has been bolstering its third-party consultant training program to help support its ITSM platform.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.