Wayside Technology Group, an IT channel company providing sales and distribution solutions through its Climb division, has acquired CDF Group (CDF), a UK-based cloud, software and IT distributor and services provider.
CDF primarily goes to market under two brands: Grey Matter, a VAR providing cloud, software and technical services; and Sigma Software Distribution, which provides innovative software products to VARs throughout EMEA.
Sigma works closely with its vendors and VARs, distributing a high-caliber portfolio of software solutions across a variety of industries. Both Sigma and Grey Matter have deep expertise in Microsoft Azure, are Microsoft Gold Partners with 9 competencies and hold various direct agreements with Microsoft.
Grey Matter specializes in supplying software and cloud subscriptions directly to end users, including ISVs and developers, and maintains direct buying relationships with more than 300 vendors. The company hosts a cloud automation platform and offers cloud service optimization, end-to-end migration services and a full suite of consulting services through its CloudKnowHow offering.
Under the terms of the agreement, Wayside is acquiring CDF for approximately $17.4 million, subject to working capital and other adjustments. For its fiscal year ended June 30, 2020, CDF reported approximately $8.9 million in gross profit and $2.0 million in EBITDA. The acquisition is expected to be accretive to EBITDA margin and net income and increase Wayside’s annual gross billings by approximately 10 percent, prior to any revenue synergies.
CDF will bring approximately 125 employees to Wayside, more than 1,000 VARs from its network, and deep relationships with notable vendors, including Microsoft, Amazon Web Services, Adobe ManageEngine, SAP and many others. In addition, CDF’s current Group CEO, Andrew King, will join Wayside and lead its European operations as president and general manager of EMEA.
