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Wesco International, which holds leadership in distribution and supply chain solutions, acquired Rahi for $217 million, approximately 7.5x Rahi’s projected trailing twelve months’ adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) as of September 30.
The acquisition will be aimed at combining Rahi with its Communication and Security Solutions (CSS) strategic business unit.
Speaking about the acquisition, John Engel, chairman, president and CEO of Wesco, said, “Rahi’s extensive services portfolio strengthens our leading data centre solution offerings for our global customers,” adding that the takeover highlights their continued investment in the high growth data centre segment and further expands cross-sell opportunities across the company.
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The takeover of Rahi is their first purchase since 2020 when Wesco announced a merger with Anixter, also a B2B distribution and supply chain solutions company.
Bill Geary, executive vice president and general manager, Wesco Communications and Security Solutions, says, “With over 900 employees in 25 countries and trailing 12-month sales of approximately $400 million, Rahi provides complementary global coverage and enhances our full suite of data centre solutions for contractors, integrators and end-user customers.This significant investment fuels growth for our technology focused customers, who can now leverage the combined global footprint, infrastructure and IT expertise of Wesco.”