Private equity firm buys CDW for $7.3 billion
The computer retailer becomes the latest company to be swallowed up by a private equity firm.
Computer retailer CDW became the latest company to be swallowed up by a private equity firm, announcing on Tuesday it had agreed to be bought by Madison Dearborn Partners for $7.3 billion. CDW shares, which have already climbed about 39 percent since early March, had risen on Tuesday morning to $84.90, their highest Nasdaq level since September 2000.
CDW said in a statement late on Tuesday its board had held an auction for various potential bidders before approving the Madison Dearborn deal, under which CDW shareholders will get $87.75 in cash for each share of CDW common stock. The price of the deal represents a premium of about 16.1 percent over CDW's closing share price of $75.56 on May 25, the last trading day prior to published reports regarding a potential transaction. Under terms of the deal, CDW's board will not declare an annual dividend in 2007, CDW said.