Softchoice taken private, moved stateside by WWT after $1.48-billion acquisition closes
Completed acquisition puts the 35-year-old software provider under American ownership at a sensitive moment.
American cloud services giant World Wide Technology (WWT) has completed its acquisition of Softchoice, the Toronto-based cloud and software solutions provider for businesses.
The take-private deal was announced Dec. 31 last year. WWT said it would acquire all of Softchoice’s outstanding common shares for $24.50 per share, a three-dollar premium over what it was trading at the time, amounting to $1.48 billion. Shareholders approved the move at a March 4 meeting. Softchoice CEO Andrew Caprara will remain in his leadership position, and the company will continue to operate under its own name.
The purchase will “help accelerate AI adoption and the digital transformation journeys” of companies worldwide, according to WWT CEO Jim Kavanaugh.
Softchoice was founded in 1989 and was initially focused on tracking down hard-to-find software for corporate clients. Since then, it has shifted much of its attention to cloud adoption, management, and migration. It claims to have over 685 managed services customers as well as major tech partners like Amazon Web Services, Google, and Microsoft.
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The brand has also influenced the Canadian startup scene. Former CEO Dave MacDonald joined the Leaders Fund as a venture partner in 2019, two years after he retired from his 16-year leadership role at Softchoice. MacDonald has also served on the boards of multiple companies, such as Densify and Turnstyle Analytics (which was acquired by Yelp), and has coached the CEOs of smaller companies.
World Wide Technology is based in St. Louis, Mo. It was founded in 1990 and also concentrates on cloud and software solutions. It now touts over $20 billion in annual revenue, over $6 billion of which comes from beyond the United States (US). It has over 10,000 employees and partners with prominent tech companies like Cisco and Nvidia.
The acquisition comes at a sensitive moment for Canada. US President Donald Trump’s constantly changing tariff threats have spurred an effort to reduce Canada’s dependence on American businesses, whether it’s by buying Canadian products or fostering entrepreneur-friendly policies. While Softchoice will maintain some of its independence, its customers are now relying on a US provider.
Feature image courtesy Unsplash. Photo by Jason Goodman.
