Management of CDI, a leading supplier of recertified or new computer equipment to the North American education market, led a buyout of this privately held company. CDI was indirectly owned by the Chicago-based Pritzker Group through Relational Technology Solutions (“RTS”), an equipment lessor. The transaction was completed on an accelerated timetable as the Pritzker Group had divested the majority of RTS and provided the management of CDI a limited amount of time to put together an MBO before approaching other potential buyers. Management acquired CDI at a favourable valuation with a significant portion of the purchase consideration financed by a subordinated vendor note resulted in a very attractive transaction for the management group.
About the Company
CDI is one of North America’s largest distributors of recertified or new, brand name PCs, laptops, and servers. CDI specializes in helping schools and universities get the most out of their IT budgets by acquiring as many computers as possible without sacrificing quality or service. CDI also supplies to the healthcare, government and corporate sectors.
As financial advisor to the management group, Crosbie assisted in negotiations with RTS regarding valuation and structure and conducted a competitive financing process that culminated in an attractive debt financing package with TD Bank on an all senior basis.