CDW Acquires Sirius Computer Solutions In $2.5B Mega Channel Blockbuster

The $20 billion solution provider powerhouse is acquiring Sirius Computer Solutions and its 2,600 employees in a move that will boost its services portfolio by $400 million and gross margins by 110 basis points.

Two of the most powerful solution providers in America are joining forces as CDW unveiled plans Monday to acquire Sirius Computer Solutions for $2.5 billion, with Sirius’ more than 2,600 employees set to join CDW’s 10,500-strong workforce.

CDW, a $20 billion channel titan ranked No. 5 on CRN’s 2021 Solution Provider 500 list, will spend $2.5 billion in cash for Sirius Computer Solutions, which ranks No. 21 on CRN’s Solution Provider 500.

Sirius will expand CDW’s services portfolio by approximately 45 percent, from approximately $900 million annual net sales in 2020 to approximately $1.3 billion in combined annual net sales, said CDW. In addition, the acquisition is expected to immediately increase CDW’s gross margin by approximately 110 basis points, according to CDW President and CEO Christine Leahy.

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The deal between the two solution providers is expected to close in December 2021.

“Combining our businesses will accelerate progress on our three-part growth strategy by augmenting our portfolio and enhancing our ability to deliver customer-centric outcomes across the full technology solutions stack and life cycle,” said Leahy in a statement. “As customers require increasingly complex and critical digital transformation initiatives, Sirius’ broad portfolio of world-class technology-based solutions and services-led approach will immediately add to our capabilities to meet this demand.”

Lincolnshire, Illinois-based CDW said Sirius will boost its capabilities in key growth areas like hybrid infrastructure, cybersecurity, digital and data innovation as well as cloud and managed services.

Founded in 1980, San Antonio-based Sirius is a leading national solution integrator with multiple offices across the U.S. With sales of over $2 billion in 2020, Sirius holds more than 5,500 IT professional and technical certifications with specialties in security, cloud, digital infrastructure and managed services.

Sirius President and CEO Joe Mertens said the combination of the two companies will create a “stronger organization that will be even better positioned for growth in the evolving IT services and solutions” landscape.

“We have long admired CDW and welcome the opportunity to bring our complementary services and solutions capabilities to serve a broader market of customers as a combined company,” Mertens said in a statement. “Sirius and CDW share common values and a performance-driven, customer-focused culture.”

Founded in 1984, CDW generated net sales of $20 billion over the past 12 months. The channel partner giant is a top-notch provider of technology solutions for governments, education and health-care customers in North America and the U.K.

CDW’s acquisition of Sirius comes after its recent purchase of cybersecurity services specialist Focal Point Data Risk.