Insight Enterprises, Inc. acquired SADA Systems, Inc. from Verse Holdco, Inc. for approximately $920 million.
December 30, 2023
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Insight Enterprises, Inc. (NasdaqGS:NSIT) entered into an equity purchase agreement to acquire SADA Systems, Inc. from Verse Holdco, Inc. for $800 million on October 25, 2023. Insight paid a closing purchase price of $410 million on a cash-free, debt-free basis, subject to certain customary purchase price adjustments. There is an additional earnout and incentive opportunity for the Seller Parties of up to $390 million, with a target of $210 million, based on the SADA business achieving EBITDA and revenue growth performances through 2026. The acquisition was financed with cash on hand and ABL facility. In 2022, SADA reported net sales of $251 million. Jeffrey Scudder of Snell & Wilmar LLP acted as legal advisor to Insight. Ethan Skerry and Ryan Slunaker of Fenwick & West LLP acted legal advisor to SADA.
Insight Enterprises, Inc. (NasdaqGS:NSIT) completed the acquisition of SADA Systems, Inc. from Verse Holdco, Inc. for approximately $920 million on December 1, 2023. The total purchase price of $425,327,000, which is net of cash and cash equivalents acquired of $24,701,000, is comprised of the initial purchase price of $423,290,000 paid in cash upon the SADA acquisition, contractual adjustments to the purchase price of $450,000 and a seller retention fund of $5,000,000 payable post-closing.
Insight Enterprises, Inc. is a technology company. The Company provides end-to-end digital transformation through a portfolio of solutions. It operates through three geographical segments: North America, Europe, Middle East, and Africa (EMEA), and Asia-Pacific (APAC). Its offerings in North America and certain countries in EMEA and APAC include hardware, software, and services, including cloud solutions. Its offerings in the remainder of its EMEA and APAC segments consist of software and certain software-related services, and cloud solutions. Its service offerings include software maintenance, vendor direct support services contracts, cloud / software-as-a-service offerings, insight delivered services, time and materials services contracts, fixed service contracts, one-call support service contracts, and third-party provided services. Its software maintenance agreements provide clients with the right to obtain any software upgrades, bug fixes and help desks and other support services.