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Wesco International Announces Agreement To Acquire Rahi Systems, A Leading Provider Of Global Hyperscale Data Center Solutions

Sep 07, 2022•over 3 years ago

Acquiring Company

Wesco

Acquired Company

Rahi Systems

PittsburghSupply Chain ManagementLogisticsOil And GasSecurity

Description

Wesco International (NYSE: WCC) today announced it has entered a definitive agreement to acquire Rahi Systems Holdings, Inc., a privately held company headquartered in Fremont, California for $217 million, and a leading provider of global hyperscale data center solutions. The purchase price represents approximately 7.5x Rahi’s projected trailing twelve months adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).

Company Information

Company

Wesco

Location

Mail 225 West Station Square Drive

Pittsburgh, Pennsylvania, United States

About

Wesco International (NYSE: WCC) is a FORTUNE 500® company with more than $22 billion in annual sales and a leading provider of business-to-business distribution, logistics services, and supply chain solutions. Wesco offers a best-in-class product and services portfolio of Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions. The Company employs approximately 20,000 people, partners with the industry's premier suppliers, and serves thousands of customers around the world.

M&A Insights

Based on deal data
Integration timeline
70% of M&A integrations take 12-24 months to complete
Tech stack consolidation
83% of merged companies consolidate technology vendors within first year
Post-acquisition investment
Companies increase IT spending by 23% on average after acquisitions
Success factor
M&A deals with strong technology integration plans are 2.5x more likely to succeed