Origin Merchant Partners acted as the exclusive financial advisor to Softchoice Corporation in its acquisition by World Wide Technology (WWT), in a definitive agreement valued at approximately C$1.8 billion. This all-cash transaction marks a significant consolidation in the technology solutions sector, poised to create expanded opportunities for merchant partners within the combined entity.
The acquisition, finalized on December 31, 2024, sees WWT acquiring Softchoice at a valuation multiple of approximately 13.2x Softchoice’s adjusted EBITDA for the trailing twelve months ending September 30, 2024. This strategic move is set to broaden WWT’s capabilities, particularly in software, cloud computing, cybersecurity, and artificial intelligence (AI). By integrating Softchoice’s strengths, WWT aims to deliver a more comprehensive suite of solutions, catering to the evolving digital transformation needs of businesses globally. This expanded portfolio will likely present new avenues for collaboration and growth for existing and future merchant partners of both organizations.
Key stakeholders, including Birch Hill Equity Partners and Softchoice’s directors and senior officers, holding approximately 51.3% of Softchoice’s outstanding shares, supported the transaction through voting agreements. This unified support underscores the strategic rationale and anticipated benefits of the acquisition for all parties involved, including the extensive network of merchant partners who rely on the stability and growth of these technology providers.
Softchoice, recognized as a leading IT solutions provider, empowers organizations to enhance agility, foster innovation, and maintain robust security. Their expertise in secure, AI-driven cloud and digital workplace solutions, underpinned by advanced software asset management, complements WWT’s global leadership in technology solutions. WWT’s Advanced Technology Center, a renowned ecosystem for hardware and software innovation, combined with its global distribution capabilities, positions the merged entity as a powerhouse for digital transformation. For merchant partners, this signifies access to a broader range of technologies and expanded market reach.
This deal not only highlights Origin Merchant Partners’ expertise in advising on large public transactions but also reinforces their commitment to building expertise with leading financial sponsors. The acquisition of Softchoice by WWT is expected to create a stronger, more versatile entity, ultimately benefiting their customers and significantly enhancing the landscape for their merchant partners by offering increased opportunities and a more robust platform for collaboration and growth in the dynamic technology market.
