WWT To Buy Softchoice In $1.25B Blockbuster: Here’s What To Know

World Wide Technology is set to acquire fellow IT channel powerhouse Softchoice for $1.25 billion within the next several months in a move to enhance WWT’s AI, cloud and software business across North America.

World Wide Technology is planning to make arguably what would be the biggest acquisition in its long history with the purchase of fellow channel superstar Softchoice for $1.25 billion to boost WWT’s AI ambitions and SMB customer base across North America.

The $20 billion St. Louis-based IT powerhouse plans to acquire Toronto, Ontario-based Softchoice in an all-cash deal to add to its already growing employee base of nearly 10,000 workers worldwide.

“As the AI revolution reshapes industries and transforms businesses worldwide, we are at the forefront of this change—leading by empowering enterprises of all sizes to achieve better business outcomes,” said WWT CEO Jim Kavanaugh (pictured) in a statement.

Kavanaugh touted Softchoice’s 35-year history in the IT industry, saying that its software, cloud, cybersecurity and AI capabilities will enable WWT to create “even greater value for our clients striving to achieve their digital transformation goals.”

Softchoice serves over 5,000 organizations with a focus on SMBs mostly in North America, while WWT’s customer footprint ranges from large enterprises to SMBs across the globe.

WWT ranks No. 7 on CRN’s 2024 Solution Provider 500 list, while Softchoice ranks at No. 35.

WWT’s First Acquisition In 10 Years; AI Ambitions

Founded in 1990, WWT is not accustomed to acquisitions.

While many tech companies grow sales and scale via acquisitions and private equity funding, WWT has grown mostly organically.

For example, WWT’s most recent acquisition came in 2015 with the purchase of software company Asynchrony for an undisclosed amount.

In 2010, WWT also acquired Performance Technology Group for an undisclosed amount.

WWT has hired thousands of new employees every year without needing external funding simply due to its strong business strategy and market execution.

WWT is currently transforming itself into an AI and generative AI global powerhouse. In addition to building out new AI labs in its Advanced Technology Center, WWT has revamped its workforce into AI experts; created homegrown GenAI products to take employee efficiency to the next level; forged groundbreaking partnerships with leading AI vendors like Nvidia; and provided innovative end-to-end AI solutions to its customers.

“Fortunately, we have been working in the big data and AI space for 10-plus years,” said Kavanaugh in an interview with CRN in late 2024. “The generative AI innovations that have happened over the last 15 months have taken the world by storm and have allowed us to build on our own platform and capabilities. … We’re basically dumping gas on the fire that we already had lit, and now we’re accelerating that.”

WWT-Softchoice Deal Details; Midmarket Focus

WWT expects to close the $1.25 billion acquisition in the late first quarter to early second quarter of 2025, meaning within the next three to five months.

The all-cash offer values Softchoice at around $17 per share. This price tag represents a premium of 14 percent of Softchoice’s share price as of Dec. 30, 2024, as well as 62 percent higher compared with the price when Softchoice went public in 2021.

Softchoice President and CEO Andrew Caprara said WWT’s scale, technology and global enterprise reach “are a perfect complement to our software- and cloud-focused solutions, our Canadian presence, and our strength in the North American midmarket.”

“I believe WWT is the ideal partner for our customers and employees and I’m excited about our future as a combined firm,” Caprara said in a statement.

More than 66 percent of Softchoice’s revenue comes from its software and cloud businesses, with a focus on cloud computing, digital workplace collaboration and software management projects.

Both companies’ board of directors have already approved the deal.

Softchoice Can Shop For Other Offers

It is key to note that the deal includes the ability for Softchoice to seek a more competitive offer before closing the deal.

If the deal isn’t finalized by early second-quarter 2025, Softchoice could pay a $34 million termination fee.

In 2021, Softchoice filed for an initial public offering on the Toronto Stock Exchange that valued the company at around $800 million.

If the deal is completed, Softchoice is expected to delist from the Toronto Stock Exchange and become a private entity within WWT.