Technology solutions and services provider World Wide Technology (WWT) has signed an agreement to acquire all issued and outstanding common shares of Canada-based Softchoice for C$1.8bn ($1.25bn).
The all-cash deal will be executed through a WWT affiliate, valuing Softchoice at C$24.5 per share.
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Birch Hill Equity Partners, directors and senior officers of Softchoice, holding about 51.3% of the outstanding shares, have entered into voting support agreements.
The board of directors has unanimously approved the deal.
Subject to regulatory approvals and customary closing conditions, the transaction is expected to close in late Q1 or early Q2 2025.
Following the deal closing, Softchoice shares will be delisted from the Toronto Stock Exchange (TSX), and the company will cease to be a reporting issuer in all applicable Canadian jurisdictions.
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By GlobalDataGenerating about $20bn in annual revenue, St. Louis, Missouri-based WWT assists enterprises in moving applications to the cloud, deploying artificial intelligence models, and executing other IT projects.
It also builds small-scale test data centres for customers to evaluate new technologies.
Softchoice, generating revenue from cloud, digital workplace, and software management projects, helps companies move on-premises applications to infrastructure-as-a-service platforms.
Its Software & Cloud revenue segment accounts for more than two-thirds of its revenue.
The company also assists enterprises in adopting productivity-enhancing technologies and managing software licenses.
Softchoice reported gross sales of C$628.6m last quarter, marking a 20.3% increase over the same period a year ago.
The company serves more than 5,000 organisations, primarily small and midsize businesses with up to C$10m in annual revenue.
Softchoice president and CEO Andrew Caprara said: “We are excited to join WWT. Its 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.
“I believe WWT is the ideal partner for our customers and employees and I’m excited about our future as a combined firm.”
