M&A Deal Summary

Madison Dearborn Partners, Providence Equity Partners, HarbourVest Partners and Silver Lake Acquire CDW

On May 29, 2007, private equity firms Madison Dearborn Partners, Providence Equity Partners, HarbourVest Partners and Silver Lake acquired e-commerce company CDW for 7.3B USD

Acquisition Highlights
  • This is Madison Dearborn Partners’ 1st, Providence Equity Partners’ 1st, HarbourVest Partners’ 1st and Silver Lake’s 2nd transaction in the E-Commerce sector.
  • This is Madison Dearborn Partners’ 2nd, Providence Equity Partners’ 4th, HarbourVest Partners’ 8th and Silver Lake’s 7th largest (disclosed) transaction.
  • This is Madison Dearborn Partners’ 37th, Providence Equity Partners’ 29th, HarbourVest Partners’ 30th and Silver Lake’s 16th transaction in the United States.
  • This is Madison Dearborn Partners’ 3rd, Providence Equity Partners’ 3rd, HarbourVest Partners’ 2nd and Silver Lake’s 1st transaction in Illinois.
Investment Fate
  • CDW went public in 2013.

M&A Deal Summary

Date 2007-05-29
Target CDW
Sector E-Commerce
Buyer(s) Madison Dearborn Partners
Providence Equity Partners
HarbourVest Partners
Silver Lake
Deal Type Going Private
Deal Value 7.3B USD
Advisor(s) Morgan Stanley (Financial)
Sidley (Legal)

Target

CDW

Vernon Hills, Illinois, United States
CDW's corporate headquarters in Lincolnshire, Illinois.
CDW's corporate headquarters in Lincolnshire, Illinois.
CDW is a direct marketer of multi-branded information technology products and services to small and medium sized businesses, government, healthcare and education customers in the United States and Canada. CDW was incorporated in 1984 and is based in Vernon Hills, Illinois.

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Buyer(S) 4

Buyer

Madison Dearborn Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 28.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Madison Dearborn Partners (MDP) is a large private equity firm that targets buyouts of private or publicly held companies, divestitures of larger companies, recapitalizations of family-owned or closely-held companies, acquisition-oriented financings, and financings to fund internal growth. MDP's target investment size is $100 to $600 million in buyout oriented transactions and $100 to $400 million in growth capital commitments. Areas of interest include basic industries (natural resources, chemicals, energy and power, automotive, building products, food, metals and mining, refining, paper, packaging and forest products, and general manufacturing), as well as communications, consumer products/services, financial services, and healthcare. Madison Dearborn Partners was formed in 1992 and is based in Chicago, Illinois.


DEAL STATS #
Overall 40 of 99
Sector (E-Commerce) 1 of 1
Type (Going Private) 2 of 8
State (Illinois) 3 of 12
Country (United States) 37 of 85
Year (2007) 3 of 6
Size (of disclosed) 2 of 23
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-05-02 VWR International

Radnor, Pennsylvania, United States

VWR International LLC is a distributor of products, services and solutions to laboratory and production facilities. VWR enables science for customers in the pharmaceutical, biotechnology, industrial, education, government and healthcare industries.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-06-20 Nuveen Investments

Chicago, Illinois, United States

Nuveen Investments LLC provides high-quality investment services designed for institutions and high-net-worth investors as well as the consultants and financial advisors who serve them.

Buy $5.8B
Buyer

Providence Equity Partners

Providence, Rhode Island, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
PE ASSETS 36.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Providence Equity Partners is a specialist private equity firm that targets investments in media, entertainment, communications, and information companies. Specifically, Providence seeks investments in wireless and wireline telephony, cable television content and distribution, music, film, publishing, radio and television broadcasting, and other media and communications sectors. Providence Equity looks to commit $150 million to $800 million of equity capital in transactions ranging from growth financings and recapitalizations, to buyouts and take-privates. Providence Equity Partners was formed in 1989 and has offices in Providence, Rhode Island; New York, New York; Los Angeles, California; London, United Kingdom; Hong Kong, China; and New Delhi, India.


DEAL STATS #
Overall 45 of 135
Sector (E-Commerce) 1 of 2
Type (Going Private) 6 of 12
State (Illinois) 3 of 4
Country (United States) 29 of 85
Year (2007) 7 of 10
Size (of disclosed) 4 of 34
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-05-21 Decision Resources

Burlington, Massachusetts, United States

Decision Resources LLC is a provider of research publications, advisory services, and consulting services to help clients shape strategy, allocate resources, and master their chosen markets. Decision Resources was formed in 1990 and is based in Burlington, Massachusetts.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-10-25 ZeniMax Media

Rockville, Maryland, United States

ZeniMax Media is a media organization headquartered outside Washington DC with international publishing offices around the globe. Through its subsidiaries, ZeniMax Media creates and publishes original interactive entertainment content for consoles, PCs, and handheld/wireless devices. ZeniMax Media divisions include Bethesda Softworks, Bethesda Game Studios, id Software, Arkane Studios, Tango Gameworks, MachineGames, ZeniMax Online Studios, Alpha Dog Games, Roundhouse Studios, ZeniMax Europe Ltd., ZeniMax Asia K.K., ZeniMax Asia Pacific Limited, and ZeniMax Australia Pty Ltd.

Buy -
Buyer

HarbourVest Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1978
PE ASSETS 86.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

HarbourVest Partners, LLC is an investment firm that makes investments in new private equity partnerships, acquires secondary interests, and makes direct investments in operating companies. HarbourVest's largest investment area is investments in private equity funds, comprising of approximately 2/3 of HarbourVest's assets. HarbourVest's direct investment group looks for investments in growth oriented businesses at a variety of stages. The Group generally targets co-investments of $5 to $100 million, growth capital financings of $5 to $40 million, or mezzanine commitments of $5 to $20 million. Sectors of interest include software, hardware, data communications, telecommunications, and financial services. HarbourVest was formed in 1997 to assume the business of Hancock Venture Partners which was formed in 1982. HarbourVest Partners is based in Boston, Massachusetts, with additional offices in London, Tokyo, and Hong Kong.


DEAL STATS #
Overall 51 of 223
Sector (E-Commerce) 1 of 4
Type (Going Private) 7 of 27
State (Illinois) 2 of 6
Country (United States) 30 of 134
Year (2007) 8 of 19
Size (of disclosed) 8 of 68
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-04-25 Panda Security S.L.

Bilbao, Spain

Panda Security S.L. is a global provider of advanced cybersecurity solutions. Panda Security offers a full portfolio of user-centric security products and services for protecting people, devices, and the networks they connect to from malicious websites, malware, spam, and other targeted attacks. With offerings for businesses and consumers alike, Panda Security offers advanced endpoint protection, sophisticated threat hunting services, and more. Designed for maximum protection with minimal complexity, the company packages its robust portfolio of security services to take the guesswork out of endpoint security.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-06-07 Einstruction

Denton, Texas, United States

Einstruction Corp. is a provider of interactive classroom technology (ICT) and content-based assessment software to the K-12, higher education, corporate and military markets worldwide. eInstruction’s comprehensive suite of products provide an interactive learning environment designed to improve student academic performance, increase efficiency and effectiveness of educators and provide greater information for use by instructors, administrators and parents. Einstruction is based in Denton, Texas.

Buy -
Buyer

Silver Lake

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 104.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Silver Lake is a mega-sized private equity firm focused on a broad range of growth investments in and acquisitions of technology companies. Silver Lake is subdivided into several investing groups including Silver Lake Partners, Silver Lake Sumeru, Silver Lake Waterman, Silver Lake Alpine, and Silver Lake Kraftwerk. Silver Lake Partners pursues large-scale private investments in companies within the technology, tech-enabled and related growth industries. Silver Lake Sumeru invests in middle market technology companies with established business models and attractive growth prospects where there is an opportunity to create value through operational transformation. Silver Lake Waterman provides growth capital to later-stage companies in the technology and technology-enabled industries, offering flexible solutions to finance expansion and acquisitions. Silver Lake Alpine is Silver Lake's debt and credit investing arm. Silver Lake Kraftwerk provides growth capital to technology and tech-enabled businesses driving efficiency across the operations, energy, and resources industries. Silver Lake Partners was formed in 1999 is headquartered in Menlo Park, California.


DEAL STATS #
Overall 19 of 135
Sector (E-Commerce) 2 of 4
Type (Going Private) 6 of 17
State (Illinois) 1 of 4
Country (United States) 16 of 95
Year (2007) 1 of 5
Size (of disclosed) 7 of 30
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-05-01 UGS PLM Solutions SL

Dallas, Texas, United States

UGS PLM Solutions, a leader in product data management, collaboration and product design software and services with 42,000 clients and more than 2.8 million seats of technology operating in the market, is the product lifecycle management (PLM) subsidiary of EDS. The company works collaboratively with its clients to create solutions enabling them to transform their process of innovation and thus begin to capture the promise of PLM.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-10-08 Mobile Messenger

Culver City, California, United States

Mobile Messenger provides turnkey technology and services solutions to small and mid-sized direct marketers and mobile content providers that enable the marketing and distribution of digital content to mobile communication consumers.

Buy -