Insight Enterprises To Buy Datalink For $11.25/shr In Cash

(RTTNews) - Insight Enterprises (NSIT) said that it agreed to acquire Datalink Corp. (DTLK), a provider of IT services and enterprise data center solutions, for $11.25 per share in cash, representing a 19% premium to Datalink's closing share price on November 4, 2016.

The transaction implies an equity purchase price of about $258 million and an enterprise value of about $196 million, net of cash and debt acquired.

Datalink is a premier provider of IT services and solutions headquartered near Minneapolis, Minn., with offices in 35 locations in the United States and approximately 570 teammates.

Insight expects to achieve approximately $20 million in run-rate cost savings within two years after closing, primarily related to corporate efficiencies, duplicative functions and IT system integration. The transaction is expected to be accretive to 2017 adjusted earnings per share, excluding transaction and integration expenses.

The transaction is subject to certain closing conditions, including regulatory approvals and approval of Datalink's shareholders, and is expected to close in the first quarter of 2017.

Insight intends to finance the transaction through a combination of cash on hand and borrowings under its existing revolving credit facilities.