CD&R has agreed to sell Sirius, a provider of secure, mission-critical technology-based solutions, to CDW. The transaction is valued at $2.5 billion. Guggenheim Securities advised CD&R and Sirius, while Evercore advised CDW.
Clayton, Dubilier & Rice announced today an agreement under which its portfolio company Sirius Computer Solutions, Inc. will be acquired by CDW Corporation (Nasdaq: CDW). The transaction is valued at $2.5 billion and expected to close in December 2021, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions.
Sirius is a leading provider of secure, mission-critical technology-based solutions for approximately 4,800 active large and mid-sized customers. Founded in 1980, Sirius is one of the largest IT solutions integrators in the United States, with 2020 net sales of $2.04 billion. The company leverages its services-led approach, broad portfolio of infrastructure hardware solutions, and the deep technical expertise of its 2,600 coworkers to support corporate and public customers and serve as a consultative solutions partner for leading OEMs including IBM, Cisco, Palo Alto Networks, and Microsoft Azure.
CD&R funds invested in Sirius in 2019. Under CD&R ownership, Sirius invested in key growth areas, including Security, Managed Services, and Cloud.
“Sirius is a strong business with a talented team that offers compelling technology solutions to their clients,” said CD&R Partner Stephen Shapiro. “We are proud to have supported the company as it successfully navigated the pandemic and invested in strategic growth. We wish them continued success in the future.”
“We believe Sirius is representative of our strategy to partner with innovative technology-related services companies to accelerate growth, and we would like to thank the Sirius team for its significant effort over the past few years to build world class capabilities to serve its customers,” said CD&R Partner Russ Fradin, former CEO of SunGard Data Systems, who has served as Chairman of Sirius since 2019. “We believe integration with CDW will open up new opportunities for the company’s future growth.”
The sale of Sirius is the third full exit of 2021 announced by CD&R, including the sale of Capco to Wipro in April and the pending sale of Solenis to Platinum Equity.
Guggenheim Securities, LLC is serving as financial advisor and Kirkland & Ellis LLP and Debevoise & Plimpton LLP are serving as legal advisors to CD&R and Sirius. Evercore is serving as financial advisor to CDW and Sidley Austin LLP is serving as legal advisor.
About Clayton, Dubilier & Rice
Clayton, Dubilier & Rice is a private investment firm with a strategy predicated on building stronger, more profitable businesses. Since inception, CD&R has managed the investment of more than $35 billion in over 100 companies with an aggregate transaction value of more than $150 billion. CD&R’s recent investments in technology-related businesses include Capco, Cloudera, Epicor, Sirius Computer Solutions, and TRANZACT. The Firm has offices in New York and London. For more information, please visit www.cdr-inc.com.
About Sirius Computer Solutions, Inc.
Founded in 1980 with headquarters in San Antonio, TX, Sirius is a privately held, leading national solutions integrator focused on helping organizations transform their business by managing their operations, optimizing their IT, and securing it all. With over 2,600 employees, multiple offices across the U.S., and a team of experts with more than 5,500 professional and technical certifications, the Sirius team specializes in Digital Infrastructure, Security, Cloud, Managed Services, and Business Innovation (Digital and Data). Sirius solutions are built on proven technologies from top strategic partners and delivered by the brightest minds in the business. Follow @SiriusNews on Twitter and visit siriuscom.com and siriuscom.com/blog for more information about Sirius.