US-based World Wide Technology (WWT) has completed acquisition of Softchoice, a Canadian software and cloud-focused IT solutions company, in a deal valued at $1.3bn (C$1.87bn).
WWT said the deal “enhances” its capabilities to support clients across their AI and digital transformation journeys, expanding its reach in North America.
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In December 2024, WWT, through an affiliated entity, reached an agreement to acquire all outstanding common shares of Softchoice for C$24.5 ($16.9) per share in cash.
The acquisition price surpassed Softchoice’s highest closing share price over the previous 52 weeks as of 30 December 2024.
As per the initial announcement, this deal represented a total shareholder return of approximately 62% relative to Softchoice’s initial public offering price of C$20.00, factoring in past dividend adjustments.
Founded in Toronto, Softchoice delivers, AI-powered cloud and digital workplace solutions.
WWT stated that the acquisition will provide clients with a more extensive range of software, cloud, cybersecurity, and AI solutions.
The deal is expected to expand WWT’s reach beyond its existing enterprise, service provider, and public sector markets in the US and globally, integrating Softchoice’s presence in Canada and its focus on the commercial, small, and medium business sectors across North America.
With access to WWT’s Advanced Technology Center, AI Proving Ground Lab, and integration centres, Softchoice is anticipated to enhance its offerings and consultant-led services for clients, including infrastructure and hardware solutions.
Softchoice partners with a range of technology companies, including Adobe, AWS, Cisco, Google, and VMware, and maintains a 30-year partnership with Microsoft.
In the near term, Softchoice will operate as Softchoice, a WWT company.
Softchoice president and CEO Andrew Caprara will remain as CEO.
WWT co-founder and CEO Jim Kavanaugh said: “This strategic transaction brings together two high-performing organizations focused on delivering groundbreaking solutions that help accelerate AI adoption and the digital transformation journeys of organisations across the globe.
“We are thrilled to welcome Andrew Caprara, the leadership team and the entire Softchoice organisation to the WWT team. Our shared focus on innovation, people and culture will deliver even greater value to our expanded client base.”
Caprara added: “We truly believe our complementary capabilities deliver an offering that no other company in the industry can match. Softchoice and WWT are exceptionally well aligned in our focus to propel organisations forward, while maintaining a deep commitment to being a great place to work for all.
“Together, I am confident that we will continue to build our world-class culture and drive growth and tangible business value for those we serve.”
