The Globe and Mail reports in its Friday, Jan. 3, edition that Scotia Capital analyst Divya Goyal downgraded Softchoice from "sector outperform" to "sector perform" following its $1.8-billion takeover by World Wide Technology Holding. The Globe's David Leeder writes that Ms. Goyal's share target rose to $25.50, matching the consensus, from $24. She says in a note: "While Softchoice has a robust software and cloud business, recent weakness in its hardware business impacted the overall VAR industry and the company's financial performance, pressuring the stock. However, over the recent quarters Softchoice has shown signs of improvement, including increased traction across its software and cloud business, and the has traded at $23/share post–Q3 earnings, implying a limited premium at the proposed acquisition price. The company stated that the proposed transaction was extensively marketed, and the current offer was cited as the best available. Although the company is open to reviewing additional offers, Softchoice could be subject to $49-million in termination fees under the current agreement. ... We believe the company is on a path to becoming a prominent software VAR in the North American SMB/commercial segment."