The year 2024 concluded with a significant mega-deal.
On Tuesday, World Wide Technology (WWT), a tech services company based in St. Louis, announced its agreement to acquire Canadian IT provider Softchoice for $1.8 billion CAD (~$1.25 billion).
The deal, valued at $1.8 billion CAD, is expected to be finalized in late Q1 or early Q2 of 2025, pending approval from the shareholders and the court.
If the deal does not go through, Softchoice may owe a termination fee of $49 million CAD (~$34 million). Despite this, Softchoice’s board remains open to other offers.
In a statement, Jim Kavanaugh, WWT’s co-founder and CEO, expressed excitement about the acquisition, citing Softchoice’s diverse capabilities that would enhance WWT’s product portfolio.
Softchoice, founded in 1989, has grown to become a major player in the tech industry specializing in software, cloud, cybersecurity, and AI solutions.
In 2013, private equity firm Birch Hill acquired Softchoice for C$412 million (~$286 million). In 2021, the company went public on the Toronto Stock Exchange (TSX) with a valuation of C$1.15 billion (~$800 million).
Softchoice reported strong financial performance in Q3 2024, with significant increases in gross profit and net income compared to the previous year.
WWT’s offer promises a total shareholder return of approximately 62% over Softchoice’s IPO price, leading to Softchoice’s delisting from the TSX upon completion of the deal.
Softchoice’s president and CEO, Andrew Caprara, expressed enthusiasm about joining WWT and emphasized the synergies between the two companies.
WWT, founded in 1990, is a leading provider of tech solutions with annual revenue of around $20 billion and over 10,000 employees.
Softchoice marks WWT’s third acquisition, following previous acquisitions of Performance Technology Group in 2010 and Asynchrony in 2015.
