Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Vernon Hills, Ill.-based information technology service provider CDW Corp. filed for an Initial Public Offer (IPO) worth $500 million. The company primarily intends to use proceeds from this offering to lessen its debt burden. Also, part of the proceeds will be channeled toward general corporate purposes.

CDW filed its IPO offering with the Securities and Exchange Commission (SEC) on Mar 22, 2013. Alongside, CDW announced that the leaders of this IPO are JPMorgan Chase & Co. (JPM - Analyst Report), Barclays PLC (BCS - Snapshot Report) and The Goldman Sachs Group, Inc. (GS - Analyst Report). The company plans to trade its stock under the symbol CDW.

In the SEC filing, CDW declared that upon completion of the IPO offering, Madison Dearborn and Providence Equity will continue to own majority stake in CDW. Moreover, the members of the board would include Paul Finnegan, co-chief executive of Madison Dearborn, and Robin Selati, managing director of Madison Dearborn.

In 2012, CDW reported total sales of $10.13 billion. This was 5.5% higher than $9.6 billion reported in the previous year. Total income came in at $119 million, increasing substantially from $17 million in 2011.

CDW was founded in 1984. The company’s stock was traded publicly from 1993 to Oct 2007. Eventually, it was acquired for approximately $7.4 billion by Madison Dearborn Partners and Providence Equity Partners. Ever since its acquisition, CDW has been primarily focused on providing information technology services and has further diversified its business.

As per CDW, sales improved at compounded annual growth rate of 9% from 2002 to 2012. This was double compared with the 4.5% growth rate of the entire U.S. information technology spending.

Moreover, in 2012 CDW’s net sales per worker increased to $1.5 million from $1.22 million recorded in 2008. This reflects CDW’s efficient and improved productivity.

Among the listed technology service providers, Blackbaud, Inc. (BLKB - Snapshot Report) is an attractive pick with a Zacks Rank #1(Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%