Softchoice Corporation Acquired by World Wide Technology for C$24.50 Per Share

Softchoice Corporation (TSX:SFTC), a well-known Canadian IT solutions provider focusing on software and cloud services, has entered into a definitive agreement to be acquired by World Wide Technology Holding Co., LLC (WWT), a global provider of technology solutions. This transaction is an all-cash deal valued at approximately C$1.8 billion.

Under the terms of this agreement, shareholders of Softchoice will receive C$24.50 per share in cash. This represents significant premiums compared to previous share valuations, with a total shareholder return of approximately 62% since the company's initial public offering.

Transaction Overview

The acquisition will not only provide immediate liquidity for shareholders but also offer them certainty in value, as it is not dependent on financing conditions. A committee composed of independent directors oversaw the process, ensuring it was conducted thoroughly and transparently.

About 51.3% of Softchoice's outstanding shares have already committed to supporting this transaction, indicating a positive reception from the major shareholders, which also include the directors and senior officers of the company.

Strategic Benefits

The acquisition is poised to expand WWT's software, cloud, cybersecurity, and AI capabilities. By joining forces, the two companies aim to provide a broader portfolio of solutions that cater to the full spectrum of digital transformation needs for their clients.

Furthermore, this union will enhance WWT's access to various customer segments, notably small and medium businesses, while bolstering its growth in both the U.S. and Canadian markets as well as internationally.

Comments from Leadership

Andrew Caprara, President and CEO of Softchoice, expressed optimism about the merger, stating that WWT's scale and reach will enhance their service offerings and operational capabilities. Similarly, Jim Kavanaugh, WWT's CEO, noted that Softchoice’s expertise in the IT sector would help create greater value for clients navigating the digital landscape.

Next Steps

The transaction is expected to be finalized in late Q1 or early Q2 of 2025, subject to shareholder and court approvals, along with customary closing conditions. A meeting for shareholders to vote on the transaction is anticipated to take place in March 2025.

Once completed, Softchoice's shares will be delisted from the Toronto Stock Exchange, marking the end of its public trading status.

Conclusion

This acquisition represents a significant shift in the IT solutions landscape, highlighting the trends of consolidation within the technology sector. By combining their strengths, Softchoice and WWT aim to deliver enhanced solutions and drive innovation in an ever-evolving digital world.

acquisition, technology, merger