Vernon Hills, Ill.-based information technology service
provider CDW Corp. filed for an Initial Public Offer (IPO) worth
$500 million. The company primarily intends to use proceeds from
this offering to lessen its debt burden. Also, part of the
proceeds will be channeled toward general corporate purposes.
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CDW filed its IPO offering with the Securities and Exchange
Commission (SEC) on Mar 22, 2013. Alongside, CDW announced that
the leaders of this IPO are
JPMorgan Chase & Co
The Goldman Sachs Group, Inc
). The company plans to trade its stock under the symbol CDW.
In the SEC filing, CDW declared that upon completion of the IPO
offering, Madison Dearborn and Providence Equity will continue to
own majority stake in CDW. Moreover, the members of the board
would include Paul Finnegan, co-chief executive of Madison
Dearborn, and Robin Selati, managing director of Madison
In 2012, CDW reported total sales of $10.13 billion. This was
5.5% higher than $9.6 billion reported in the previous year.
Total income came in at $119 million, increasing substantially
from $17 million in 2011.
CDW was founded in 1984. The company's stock was traded publicly
from 1993 to Oct 2007. Eventually, it was acquired for
approximately $7.4 billion by Madison Dearborn Partners and
Providence Equity Partners. Ever since its acquisition, CDW has
been primarily focused on providing information technology
services and has further diversified its business.
As per CDW, sales improved at compounded annual growth rate of 9%
from 2002 to 2012. This was double compared with the 4.5% growth
rate of the entire U.S. information technology spending.
Moreover, in 2012 CDW's net sales per worker increased to $1.5
million from $1.22 million recorded in 2008. This reflects CDW's
efficient and improved productivity.
Among the listed technology service providers,
) is an attractive pick with a Zacks Rank #1(Strong Buy).