CDW 2014 Annual Report Download - page 8

Table of Contents
The following table provides information regarding our reportable segments and our customer channels:
For further information on our segments, including financial results, see Note 17 to the accompanying audited consolidated financial
statements included elsewhere in this report.
We offer more than 1,000 brands, from well-established companies such as APC, Apple, Cisco, EMC, Google, Hewlett-Packard, IBM,
Lenovo, Microsoft, NetApp, Samsung, Symantec and VMware to emerging vendor partners such as Aerohive Networks, Box, Inc., Drobo, Jive,
Nimble Storage, Nutanix, and Ruckus. In
2014 , we generated over $1 billion of revenue for each of four of our vendor partners and over $100
million of revenue for each of 12 other vendor partners. We have received the highest level of certification from major vendor partners such as
Cisco, EMC and Microsoft, which reflects the extensive product and solution knowledge and capabilities that we bring to our customers' IT
challenges. These certifications also provide us with access to favorable pricing, tools and resources, including vendor incentive programs,
which we use to provide additional value to our customers. Our vendor partners also regularly recognize us with top awards and select us to
develop and grow new customer solutions.
History
CDW was founded in 1984. In 2003, we purchased selected U.S. assets and the Canadian operations of Micro Warehouse, which
extended our growth platform into Canada. In 2006, we acquired Berbee Information Networks Corporation, a regional provider of technology
products, solutions and customized engineering services in advanced technologies primarily across Cisco, IBM and Microsoft portfolios. This
acquisition increased our capabilities in customized engineering services and managed services.
On October 12, 2007, CDW Corporation, an Illinois corporation, was acquired through a merger transaction by an entity controlled by
investment funds affiliated with Madison Dearborn Partners, LLC and Providence Equity Partners L.L.C. (the “Acquisition”).
CDW Corporation
continued as the surviving corporation and same legal entity after the Acquisition, but became a wholly owned subsidiary of VH Holdings, Inc.,
a Delaware corporation.
On December 31, 2009, CDW Corporation merged into CDWC LLC, an Illinois limited liability company owned by VH Holdings,
Inc., with CDWC LLC as the surviving entity. This change had no impact on our operations or management. On December 31, 2009, CDWC
LLC was renamed CDW LLC (“CDW LLC”). On August 17, 2010, VH Holdings, Inc. was renamed CDW Corporation (“Parent”), a Delaware
corporation.
Throughout this report, the terms “the Company” and “CDW” refer to Parent and its 100% owned subsidiaries.
Prior to July 2, 2013, the date of our initial public offering (“IPO”), Parent was owned directly by CDW Holdings LLC ("CDW
Holdings"), a company controlled by investment funds affiliated with Madison Dearborn Partners, LLC and Providence Equity Partners L.L.C.
(the "Sponsors"), certain other co-investors and certain members of CDW management. Before the IPO, Madison Dearborn Partners, LLC and
Providence Equity Partners L.L.C. owned 46.0% and 40.6% of our common stock, respectively. After the IPO and through subsequent
secondary offerings in fourth quarter of 2013 and during 2014, the Sponsors' ownership has significantly decreased. As of December 31, 2014,
the Sponsors own 15.5% and 13.7% of our common stock, respectively.
5
Corporate Segment
Public Segment
Customer
Channels Medium/Large
Business
Small Business Government Education Healthcare Other
Target
Customers 100 - 5,000
employees
10 - 100
employees
Various federal,
state and local
agencies
Higher
education and
K-12
Hospitals, ambulatory
service providers and
long-term care
facilities
Advanced services
customers plus
Canada
2014 Net Sales
(in billions) $5.5
$1.0 $1.5 $1.8 $1.6 $0.7