BY Fraser Tennant
In a move that will enhance its artificial intelligence (AI), cloud and software business across North America, World Wide Technology (WWT) is to acquire fellow IT channel company Softchoice in an all-cash transaction valued at C$1.8bn.
Under the terms of the agreement, WWT, through an affiliate, will acquire all the issued and outstanding common shares of Softchoice for a price of C$24.50 per share.
The transaction will be implemented by way of a statutory plan of arrangement under the Canada Business Corporations Act and is subject to, among other things, the approval of a special meeting of shareholders in March 2025.
A termination fee of C$49m would be payable by Softchoice in certain circumstances, including in the context of Softchoice entering into a definitive agreement with respect to a superior proposal.
“Softchoice has been a transformative player in the IT industry for over 35 years,” said Jim Kavanaugh, co-founder and chief executive of WWT. “Adding its complementary software, cloud, cyber security and AI capabilities to WWT’s portfolio will enable us to create even greater value for our clients striving to achieve their digital transformation goals.”
Founded in 1990, WWT is a global technology solutions provider leading the AI and digital revolution, combining the power of strategy, execution and partnership to accelerate digital transformational outcomes for large public and private organisations around the world.
“WWT’s scale and global reach, customer base of large organisations, and industry leading infrastructure solutions are a perfect complement to our software and cloud focused solutions, our Canadian presence and our strength in the North American mid-market,” said Andrew Caprara, president and chief executive of Softchoice. “WWT is the ideal partner for our customers and employees and I am excited about our future as a combined firm.”
The transaction is also subject to court approval and customary closing conditions, including receipt of key regulatory approvals. It is not subject to any financing condition. Assuming the timely receipt of all required approvals, the transaction is expected to close in late Q1 or early Q2 2025.
David Steward, founder and chairman of WWT, concluded: “This acquisition strengthens our access to commercial, small and medium business customers while expanding WWT’s position in the US, Canada and around the world.”