Shares of online computer retailer CDW Corp. (NASDAQ: CDWC) rose on Wednesday, a day after it agreed to be acquired by private equity group Madison Dearborn Partners LLC for $7.3 billion in cash.
CDC stock rose $2.29, or 2.76 percent, to $85.40 in late morning trading on the Nasdaq Stock Market, a price just short of its 52-week high of $85.90
Shareholders will get $87.75 in cash for each share of CDW common stock, which represents a 16 percent premium over the companyâ€™s share price on May 25 when speculation of the deal began.
The retailer, which sells primarily to government clients, said its board spoken to a number of potential bidders before approving the Madison Dearborn deal.
We believe it provides a compelling opportunity to immediately maximize value for our shareholders, John Edwardson, CDW chairman and CEO said in a statement. We are pleased to partner with the world-class investment firm of MDP.
Completion of the deal is subject to shareholder and regulatory approvals and is expected near the end of the third quarter or early in the fourth quarter.