Kelway founder Phil Doye has led a major share buy-back and a significant investment by North American IT group CDW Corporation (NASDAQ:CDW) in a bid to extend both firms’ operations internationally.
The firm announced a buy-out of all shares in the firm held by Core Capital, at the same time revealing that CDW has acquired a 35 percent stake in the business.
In the deal, backed by Barclays and HSBC, Doye and Kelway MD Dan Laws remain the majority shareholders in the business.
“Today’s announcement is a significant one and combined with the investment from CDW will enable us to accelerate towards our £1bn revenue goal,” says Doye. “Having worked with CDW for over 18 months on joint client opportunities, this investment feels like a natural next step in our partnership.”
Under the new structure, Kelway and CDW – which posts revenues in excess of $10bn – plan to integrate more tightly to extend the global supply chain services they provide to customers in Europe and North America. Together, says Kelway, the two will offer customers consistent procurement and deployment services across multiple international locations.
Kelway has grown rapidly in both the UK and internationally over recent years, achieving revenues in excess of £500m in 2013/14, reflecting year-on-year growth of 49 percent.
The company was founded in 1990 by Doye, and seen significant organic growth and a series of successful acquisitions.
Tom Richards, chairman and CEO of CDW, says the firm’s investment in Kelway is “a natural extension” of its history of ‘following the customer.’
“For more than a year, Kelway has been a strategic partner, helping support our customers’ growing international business needs,” he comments. “The investment we are announcing today solidifies our partnership with Kelway and strengthens our ability to provide a more comprehensive solution to our customers and ensure we deliver a consistent brand experience, regardless of where the solution is delivered.”
