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Softchoice Corp. will be acquired by U.S.-based World Wide Technology in an all-cash deal that is expected to de-list the cloud tech firm from the Toronto Stock Exchange a few years after its initial public offering.
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The company announced on Tuesday morning that the deal is valued at $1.8 billion, or $24.50 per share in cash to Softchoice, and will be overseen by TD Securities. The agreement also comes with a $49 million termination fee. Softchoice shares gained roughly 14 per cent just after the Toronto markets opened, marking its biggest intraday gain since March.
Softchoice went public in May 2021 at $20 per share, joining a wave of other Canadian tech firms filing for IPOs that year, including TELUS International and MDA Space Ltd.
The company has been a “transformative player” in the information tech industry for over 35 years, said World Wide Technology chief executive Jim Kavanaugh.
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