Briefing

CDW announces agreement to acquire Toronto-based Scalar Decisions Inc.

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The cloud-services company—named the top Canadian ICT security company by revenue in the Branham300—has been acquired by Illinois-based CDW, which offers back-end software to government and businesses. CDW said the acquisition would boost its existing solutions and expertise in areas like security and the cloud. Scalar Decisions was founded in 2004 and employs 350 people in Ottawa, Montreal, Winnipeg, Calgary, Edmonton, Vancouver and Victoria. The terms of the acquisition weren’t disclosed. (BetaKit)

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Talking point: Scalar Decisions said it hit nearly $250 million in sales over the past year. Even at a five-times multiple, the acquisition would be priced at a hefty $1.25 billion. Smaller firms in this space have seen significant exits; last year, Waterloo, Ont.-based procurement startup Bonfire, founded in 2012, was acquired by special-purpose acquisition company GTY for $140 million. According to Communitech, Bonfire employed about 80 people at the time. Scalar Decisions said it hit nearly $250 million in sales over the past year. For its part, CDW generated net sales of US$16 billion as of Sept. 30, 2018.