Wesco International is acquiring systems integrator and VAR Rahi Systems for $217 million, or roughly 7.5x Rahi’s projected trailing 12 months EBITDA (months adjusted earnings before interest, taxes, depreciation and amortization).This is technology deal number 808 that ChannelE2E has covered so far in 2022. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.Net sales of $1.6 billion for the second quarter of 2022 -- up 9.6% compared to $1.5 billion for the second quarter of 2021. Adjusted EBITDA of $150.0 million for the second quarter of 2022, up 14.4% compared to $131.1 million for the second quarter of 2021. Added Bill Geary, executive VP and general manager, Wesco Communications and Security Solutions.
Wesco Acquires Rai Systems; Expands Communications and Security Solutions Business Unit
Rahi Systems, founded in 2012, is based in Fremont, California. The company has 940 employees listed on LinkedIn. The IT solutions provider's expertise spans data center and IT infrastructure, cloud services, unified communications, managed services and global distribution/logistics.Wesco, based in Pittsburgh, Pennsylvania, provides business-to-business distribution, logistics, and supply chain services. Wesco's areas of expertise include Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions. Company sales were $5.5 billion in Q2 of 2022, up 19% compared to the corresponding quarter last year.Rahi Systems will tuck into Wesco's Communications and Security Solutions (CSS) strategic business unit. That CSS business unit generated:Global Systems Integrator M&A: Executive Perspectives
In a prepared statement about the deal, Wesco CEO John Engel said:“This acquisition strengthens our leading data center solution offerings for our global customers. Rahi’s extensive services portfolio serving the leading global hyperscale data center providers expands the cross-sell opportunities across our company.”
“Rahi has a successful history of above-market growth since its inception. With more than 900 employees in 25 countries around the world, this acquisition provides complementary global coverage and enhances our full suite of data center solutions for contractors, integrators and end-user customers."
