CDW is acquiring IT solutions integrator and MSP Sirius Computer Solutions from private equity firm Clayton, Dubilier & Rice (CD&R) for $2.5 billion in cash, the companies announced this morning.
This is technology M&A deal number 650 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Sirius, founded in 1980, generated net sales of $2.04 billion in 2020, the seller said in the M&A announcement. The company has roughly 2,600 employees who support approximately 3,900 large and mid-sized customers.
The Sirius IT services and solutions catalog spans Hybrid Infrastructure, Security, Digital and Data Innovation, and Cloud and Managed Services, the seller said.
Sirius will expand CDW’s Services portfolio by approximately 45%, from approximately $900 million annual net sales in 2020 to approximately $1.3 billion in combined annual net sales, CDW predicted.
CDW, founded in 1984, has 10,500 employees. For the trailing 12 months ended June 30, 2021, CDW generated net sales of approximately $20 billion, the buyer said.
CDW Acquires Sirius: Executive Perspectives
In a prepared statement about the deal, CDW CEO Christine A. Leahy said:
“As customers require increasingly complex and critical digital transformation initiatives, Sirius’ broad portfolio of world-class technology-based solutions and services-led approach will immediately add to our capabilities to meet this demand. Combining our businesses will accelerate progress on our three-part growth strategy by augmenting our portfolio and enhancing our ability to deliver customer-centric outcomes across the full technology solutions stack and lifecycle. We look forward to welcoming the talented Sirius team and leveraging our common values and collective unparalleled expertise to deliver the best customer experience and create value for CDW shareholders.”
Added Sirius CEO Joe Mertens:
“Today is an exciting day for Sirius. We have long admired CDW and welcome the opportunity to bring our complementary services and solutions capabilities to serve a broader market of customers as a combined company. Sirius and CDW share common values and a performance-driven, customer-focused culture. We look forward to the opportunity to combine Sirius’ considerable talents with CDW’s, and to being part of a larger, stronger organization that will be even better positioned for growth in the evolving IT services and solutions landscape.”
Concluded CD&R Partner Stephen Shapiro:
“Sirius is a strong business with a talented team that offers compelling technology solutions to their clients. We are proud to have supported the company’s growth, and we wish them continued success in the future.”
CD&R has owned a majority stake in Sirius since 2019. The Sirius sale to CDW is expected to close in December 2021.
CDW and Sirius: Previous IT Services Acquisitions
CDW and Sirius both have M&A experience. For instance:
- CDW acquired Google Cloud education partner Amplified IT in March 2021, and ServiceNow partner Scalar in 2019.
- Sirius acquired Microsoft 365 and Azure cloud partner Champion Solutions Group Inc. in 2020, and Continuum Security Solutions in 2017.
