CDW could be bought out

UPDATE This rumor is upgraded to 'fact' today. CDW Corp. on Tuesday announced that the distributor of hardware, software and technology accessories has agreed to be acquired by a private equity company in a $7.3 billion deal.

Under the agreement with Chicago's Madison Dearborn Partners LLC, CDW shareholders will receive $87.75 in cash for each share of common stock, CDW said in a news release issued after the close of business.

CDW said that's a 16.1 percent premium over the Vernon Hills-based company's $75.56 closing share price Friday and a premium of approximately 31.4 percent over the average closing share price during the previous 90 trading days.

Earlier Tuesday, CDW's shares rose to $83.11, a seven-year high, after The Wall Street Journal reported it was in talks to be acquired.

John A. Edwardson, CDW's chairman and chief executive officer, said in the release that the buyout represents a new chapter for the company.

"We are pleased to partner with the world-class investment firm of MDP, whose investment goals are closely aligned with our strategy and long-term objectives," he said. More at Yahoo.com

05/29/07 Shares of CDW Corp. rose 9 percent early on Tuesday following a report that the computer technology retailer may be a takeover target from private equity firms.

CDW shares, which have already climbed about 28 percent since early March, rose to $84.69 in pre-open trade on NASDAQ.

Private equity firms are in talks for a buyout of CDW, which has a market capitalization of about $6 billion, The Wall Street Journal said on Tuesday, citing unnamed sources. Madison Dearborn Partners is considered in the lead to buy CDW.

The talks are at a sensitive stage and could fall apart, the paper said, adding that the buyout firm might also face some late competition.

CDW, based in Vernon Hill, Illinois, and Madison Dearborn were not immediately available for comment. Reuters