Micro Warehouse, Inc., Norwalk, CT, a direct marketer of computer products with annual revenues of $2.2 billion, will be acquired by a group of investors led by Gary L. Wilson, chairman and investor in Northwest Airlines; former IBM CFO Jerome B. York; and investment firm Freeman Spogli & Co. Inc.
Under the merger agreement, shareholders will receive $19 in cash for each Micro Warehouse share, representing a 44% premium to the company’s average stock price over the past 30 days. The transaction is valued at approximately $725 million. The acquisition is expected to be completed by the end of January. Credit Suisse First Boston and CIBC World Markets have committed to fund $320 million in senior debt financing at the closing of the transaction.
Micro Warehouse Inc. is a specialty catalog and online retailer and direct marketer of brand-name personal computers, computer software, accessories, peripheral and networking products to commercial and consumer customers.
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