Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
One last trader closed an interesting 2024.
On Tuesday, World Wide Technology (WWT), a technology company based in St. he announced has agreed to acquire Canadian IT provider Softchoice in a deal that values the latter at $1.8 billion CAD (~$1.25 billion).
The deal, which is all-cash, has been approved by Softchoice’s board of directors, but has not yet been voted on by the company’s shareholders. It also contains court approval and closing conditions; The company expects it to be completed in late Q1 or early Q2 2025.
If not, Softchoice could be at risk of a $49 million CAD (~$34 million) liquidation fee. His agency has retained the right to consider other promotions, however.
In a statement, Jim Kavanaugh, founder and CEO of WWT, said Softchoice’s software, cloud, cybersecurity, and AI capabilities will complement WWT’s existing capabilities.
“Softchoice has been transforming the IT industry for more than 35 years,” he said, “and (the acquisition) helps us create greater value for our customers as they strive to achieve their digital transformation goals.”
Softchoice was founded in 1989 by David Holgate and Jone Panavas to provide hard-to-find software to business customers. The company has grown and evolved over the years, and is now one of the largest technology solutions and services providers in North America, according to Softchoice’s website.
In 2013, private equity firm Birch Hill acquired Softchoice for C$412 million (~$286 million), on Crunchbase. Almost ten years later, in 2021, the company made an initial public offering on the Toronto Stock Exchange (TSX) that was valued at approximately C$1.15 billion (~$800 million).
Softchoice’s finances have been strong as of late. In Q3 2024, the company report 10% annual increase in gross profit and 8% increase in revenue, driven by customer growth. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $23.2 million for the quarter, up 2.2% from Q3 2023.
WWT says its offer represents a return to shareholders of about 62% over Softchoice’s initial purchase price. If the deal goes through, Softchoice will delist from the TSX.
“We are excited to join WWT,” Softchoice President and CEO Andrew Caprara said in a press release. “Its scale and global reach, large enterprise customers, and enterprise solutions are key to our software and cloud-based solutions, our presence in Canada, and our strength in the North American mid-market.”
WWT, founded in 1990 by Kavanaugh and David Steward, helps clients and partners imagine, test, and deploy technology solutions, including projects involving cloud computing, data center infrastructure, and software development. The company’s annual revenue is around $20 billion, and it employs more than 10,000 people.
Softchoice is WWT’s third acquisition in its history. In 2010, WWT acquired Baltimore, Maryland-based Performance Technology Group. And in 2015, WWT bought software company Asynchrony.
