10/10/2003 - CDW Corporation announced the purchase of Connecticut-based Micro Warehouse.
Incorporated in 1984 in Vernon Hills, Illinois, CDW Corporation (Nasdaq: CDWC) is a leading catalog and Web-based distributor of hardware, software, and networking components for businesses, government agencies and educational institutions throughout the U.S.
Micro Warehouse, established in 1987, distributes approximately 30,000 computer products and services, including hardware, software, peripherals, and networking products, to commercial, education, government and consumer clients.
CDW's purchase of Micro Warehouse marks the company's first acquisition in its nineteen-year history. With minimal debt and $300 million in cash, CDW was poised in 2003 to make a deal.
The transaction includes:
In a statement introducing terms of the deal John Edwardson, CDW's chairman and chief executive offier, said: "From the beginning we've set very clear acquisition criteria, which are: expand our customer base, extend our geographic reach, or enhance our product capabilities. With this investment, we have achieved all three objectives and delivered value to every CDW stakeholder group."
CDW and Micro Warehouse have established similar business models. Each model focuses on offering similar name brand products to small- and medium-sized businesses in the commercial, educational, and governmental sectors. Yet despite the similarities in core competencies, CDW's acquisition of Micro Warehouse may open up a number of new opportunities for the firm. Below is a list of prospects for CDW.
Not only will this acquisition have a direct impact on the business of CDW, but it may also influence the distribution of computer accessories in a much larger context. Among the effects this purchase may have are:
Venture Development Corporation (VDC) will further assess CDW's acquisition in its upcoming multi-client market research study analyzing the U.S. Aftermarket for Computer Accessories, Fifth Edition.
The research program will be packaged in two parts:
This study will provide accurate, detailed assessments - including market estimates and forecasts - of the U.S. market for selected desktop and notebook computer accessories. The report will analyze and trend all factors affecting this market, identify near-term market opportunities, and investigate the competitive landscape.
About Venture Development Corporation
Venture Development Corporation, a technology market research and strategy firm, was founded in 1971 by graduates of Harvard Business School and MIT. Over the years, VDC has developed and fine-tuned a unique and highly successful methodology for forecasting and analyzing dynamic technology markets. The company has over 30 years of experience in providing market research, strategic analysis and consulting services to technology companies worldwide. The VDC mission is to provide our clients with strategic and tactical information that satisfies real needs and will provide lasting value, fostering client loyalty and respect.
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