WSJ: Private Equity Firms In Buyout Talks With CDW

The Wall Street Journal reported Monday that CDW is in talks with private equity firms about a possible buyout of the $6.8 billion Vernon Hills, Ill.-based solution provider. The WSJ, citing unnamed sources, said Madison Dearborn Partners is thought to be in the lead to buy the company.

CDW did not return calls seeking comment.

Solution providers have said in recent months they've seen CDW become increasingly aggressive in pricing as it seeks new growth. Solution providers have charged that CDW leverages its MDF and rebate money to sell products, notably Hewlett-Packard systems, below their costs. CDW denied the charge.

Still, CDW shares are up only about 7 percent this year despite a 28 percent jump since early March. CDW shares closed Friday at $75.56, then rose to $82.10, up 8.66 percent in early trading Monday, on the strength of the buyout talks.