Wesco Intl To Acquire Rahi Systems For $217 Mln; Lifts FY22 Adj. Earnings Growth Outlook

Wesco International (WCC) Wednesday announced a definitive agreement to acquire privately held global hyper-scale data center solutions provider Rahi Systems Holdings, Inc. for $217 million.

The company said the purchase price represents approximately 7.5x Rahi's projected trailing 12 months adjusted EBITDA.

In a separate announcement, Wesco said reaffirmed the 2022 financial outlook and long-term growth view. The company now expects adjusted earnings per share of $15.60 to $16.40, or up 55 to 65 percent versus the prior year.

Earlier, the company was looking for fiscal 2022 adjusted earnings per share to grow double digits to between $11.00 to $12.00.

Wesco expects sales to increase by 16 to 18 percent, while the previous projection was a sales increase of 5 to 8 percent.

Wesco expects to achieve a 'mid-single digit plus' organic sales compound annual growth rate, with EBITDA and earnings per share growing at least twice the sales growth rate. The previous outlook for Adjusted EBITDA margin was the growth of 6.7 to 7.0 percent.

The Company plans to begin the cash dividend on its common stock of approximately $1.50 per share annually, payable quarterly starting in the first quarter of 2023.

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