Wesco to purchase California data solutions company

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Pittsburgh-based Wesco International, a business-to-business distribution, logistics services, and supply chain solutions provider, recently signed an agreement to purchase California-based Rahi Systems Holdings for $217 million.

Rahi Systems provides data center solutions to its customers by managing and simplifying technology. It will combine with Wesco’s Communication and Security Solutions strategic business unit, where it will strengthen the company’s global data center solution offerings.

“Rahi has a successful history of above-market growth since its inception,” said Bill Geary, the business unit’s executive vice president and general manager. “With more than 900 employees in 25 countries around the world, this acquisition provides complementary global coverage and enhances our full suite of data center solutions for contractors, integrators, and end-user customers.”

The purchase price is approximately seven and a half times Rahi’s projected 12-month adjusted earnings before interest, taxes, depreciation, and amortization.

Wesco generates more than $18 billion in annual sales and offers nearly 1.5 million products, end-to-end supply chain services, and leading digital capabilities. Its customer base includes government agencies, institutions, commercial and industrial businesses, contractors, telecommunications providers, and utilities.

Globally, Wesco employs approximately 18,000 people in more than 50 countries, working at around 800 branches, warehouses, and sales offices.