Madison Dearborn in Talks to Buy CDW -- WSJ

Technology retailer CDW Corp. is in discussions with private equity firms about a buyout, according to the Wall Street Journal. Madison Dearborn Partners is believed to be the leading contender, although the negotiations are said to be at a delicate stage and could be spoiled by competitive offers from other firms. CDW is a reseller of computers and software to large companies and to the government. Its products come from companies including HP, Microsoft and Cisco. It also sells Apple products through its Mac Warehouse unit. The company serves retail customers as well through physical and online catalogues. In 2006, the company posted net income of $266.1 million on sales of $6.79 billion. During that year, CDW restructured its corporate sales organization into five regions in order it achieve consistency between the corporate and public-sector sales forces. The benefits were seen in the most recent quarter, when the company beat Street expectations on sales and earnings. On Friday, CDW's shares traded at $75.56, $4 below their 52-week high.

Sources: Wall Street Journal, Reuters, RTTNews
Commentary: Unlucky Number Seven: Sideways Performers Since 2000 - Part Deux • CDW Corp. Accelerates Off Solid Growth • CDW Corp. Growth Now Qualifies As Solid
Stocks/ETFs to watch: CDW Corp. (CDWC). Competitors: Insight Enterprises Inc. (NSIT), PC Connection Inc. (PCCC), Systemax Inc. (SYX)
Conference call transcripts: Q1 2007

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Comments

[Risk Arb]

Is there an update story now that CDW has come to an agreement on a buyout price?

[Judith Levy]

Yes. Please see "Madison Dearborn to Buy CDW for $7.3 Billion" (hardware.seekingalpha....).