World Wide Technology Holding Co. Ltd has announced plans to acquire Softchoice Corp. for $1.8 billion CAD, or approximately $1.25 billion USD. The acquisition will strengthen WWT’s presence in the U.S. and Canada, particularly in the mid-market segment, and enhance its cloud, cybersecurity, and AI capabilities. The deal values Softchoice at C$24.5 per share, representing a premium of more than 10% to the company’s Monday close. Softchoice, based in Toronto, focuses on cloud, digital workplace, and software management projects and posted gross sales of C$628.6 million last quarter.
The acquisition is expected to close in the first or second quarter of 2025, pending regulatory approval. Softchoice investors with 51.3% of outstanding shares have backed the deal, with provisions for seeking competitive offers before finalizing the transaction. WWT founder and chair David Steward expressed excitement about expanding WWT’s position globally and catering to commercial, small, and medium business customers. The acquisition aligns with WWT’s strategy of providing IT services and solutions to enterprises worldwide.
The move signals WWT’s commitment to growth and diversification in the IT services industry, as it seeks to capitalize on the increasing demand for cloud, AI, and cybersecurity solutions. With Softchoice’s expertise and customer base, WWT aims to further solidify its market position and drive innovation in the ever-evolving technology landscape. Stay tuned for further updates on this strategic acquisition that is set to reshape the IT services sector significantly.
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