CDW settles investor lawsuits

CDW Corp., a computer and software reseller, settled four lawsuits by investors who claimed that a $7.3 billion buyout offer by Madison Dearborn Partners LLC was too low, the company said.

Four lawsuits filed against CDW and its directors after the May 30 announcement of the acquisition were resolved, according to a filing yesterday with the Securities and Exchange Commission. The deal ends two cases in Chicago federal court and two in Illinois state court.

"There is an agreement in principle, with the terms to be finalized and submitted to the court for approval," said investors' lawyer Marvin Miller, who filed one of the federal complaints. James Shedden, a lawyer who filed the other federal suit, didn't immediately return a call seeking comment. The state cases were dismissed July 30 because they duplicated the federal suits.

CDW, based in Vernon Hills, didn't disclose the terms of the accord. In a July 3 regulatory filing, the company said it hadn't received any buyout offers higher than that proposed by Madison. The firm was joined in its funding of the acquisition by Providence Equity Partners.

"The agreement will not affect the amount of consideration to be paid to shareholders of CDW," the company said in the filing. The acquisition by Madison, a $6.5 billion leveraged buyout fund based in Chicago, is valued at $87.75 per share. CDW spokesman Gary Ross declined to comment.

Shareholders of record as of July 5 will be given the opportunity to vote on the acquisition Aug. 9, the company said.

CDW shares rose 78 cents to close at $85.30 in Nasdaq Stock Market composite trading.