WWT to Acquire Canadian IT Firm Softchoice in $1.25 Billion Deal
World Wide Technology (WWT), a leading tech services provider headquartered in St. Louis, has announced its intention to acquire Canadian IT company Softchoice in an all-cash deal valued at CAD 1.8 billion (approximately USD 1.25 billion). The acquisition, pending shareholder approval, court clearance, and other standard closing conditions, is expected to be finalized by late Q1 or early Q2 2025.

World Wide Technology (WWT), a leading tech services provider headquartered in St. Louis, has announced its intention to acquire Canadian IT company Softchoice in an all-cash deal valued at CAD 1.8 billion (approximately USD 1.25 billion). The acquisition, pending shareholder approval, court clearance, and other standard closing conditions, is expected to be finalized by late Q1 or early Q2 2025.
The board of Softchoice has unanimously approved the deal, but it will be put to a shareholder vote in the coming months. If the transaction falls through, Softchoice could face a termination fee of CAD 49 million (approximately USD 34 million). Despite this, the company retains the right to evaluate other offers, leaving the door open for alternative bids.
Jim Kavanaugh, co-founder and CEO of WWT, described the acquisition as a strategic move that will enhance WWT’s offerings in software, cloud, cybersecurity, and artificial intelligence. “Softchoice has been a transformative player in the IT industry for over 35 years,” he said, emphasizing the value this partnership could bring to customers pursuing digital transformation initiatives.
Founded in 1989 by David Holgate and Jone Panavas, Softchoice initially focused on sourcing hard-to-find software products for enterprise clients. Over the decades, the company evolved into one of North America’s largest IT solutions and services providers. In 2013, private equity firm Birch Hill acquired Softchoice for CAD 412 million (USD 286 million). By 2021, the company went public on the Toronto Stock Exchange (TSX) with a valuation of CAD 1.15 billion (USD 800 million).
Financially, Softchoice has reported consistent growth in recent quarters. During Q3 2024, the company recorded a 10% year-over-year increase in gross profit and an 8% rise in net income, fueled by an expanding customer base. Adjusted EBITDA also saw a modest 2.2% uptick, reaching USD 23.2 million for the quarter.
WWT’s acquisition offer represents a 62% total shareholder return over Softchoice’s initial public offering price. If the deal is finalized, Softchoice will be delisted from the TSX. Reflecting on the merger, Softchoice President and CEO Andrew Caprara stated, “Its scale and global reach, customer base of large organizations, and industry leading infrastructure solutions are a perfect complement to our software and cloud-focused solutions, our Canadian presence, and our strength in the North American mid-market.”
Founded in 1990, WWT provides end-to-end technology solutions to clients worldwide, specializing in areas like cloud computing, data center infrastructure, and application development. The company, which generates approximately USD 20 billion in annual revenue, employs over 10,000 people globally.
This acquisition will mark WWT’s third major purchase. In 2010, the company acquired Performance Technology Group, and in 2015, it bought software development firm Asynchrony. As WWT and Softchoice align their strengths, the companies aim to broaden their impact across the IT services landscape while addressing the evolving needs of their customer base.