Tech Data of Clearwater, FL announced on November 13 that it has entered into a definitive agreement to be acquired by an affiliate of funds (the “Apollo Funds”) managed by affiliates of Apollo Global Management, Inc. Through the agreement, the affiliate of the Apollo Funds will acquire all of the outstanding shares of Tech Data common stock for $130 per share in a transaction with an enterprise value of approximately $5.4 billion.
The purchase price represents a 24.5
percent premium to the unaffected 30-day volume weighted average closing share
price of Tech Data’s common stock ended Oct. 15, 2019, the last trading day
prior to published market speculation regarding a potential transaction
involving the company.
“Over our 45-year history, Tech Data
has grown to become one of the largest and most respected technology
distributors in the world. This agreement reflects the significant progress we
have made in our strategy of delivering higher value and positions us for
continued growth and success,” said Rich Hume, chief executive officer, Tech
Data. “This investment by funds managed by one of the world’s leading global
alternative investment managers will afford us additional resources to
accelerate our ability to bring to market the technology products and solutions
the world needs to connect, grow and advance. The transaction will enable us to
build on our success, making Tech Data a growth platform and enabling us to
further differentiate and expand our end-to-end solutions and provide our
channel partners with unparalleled reach, efficiency and expertise.”
Charles E. (“Eddie”) Adair, lead independent director of the Tech Data Board of Directors said, “This agreement follows a process of consideration of Apollo’s proposal by the board that included review and discussion of strategic alternatives with the board’s financial and legal advisors. The transaction delivers significant cash value to our shareholders and creates exciting opportunities for our colleagues, channel partners and other key constituents.”
“Through this investment, we are committed to expanding Tech Data’s position as a trusted partner to the world’s leading technology vendors while providing best-in-class customer service,” said Matt Nord, co-lead partner of Apollo Private Equity. “As a private company with our sponsorship and a strong balance sheet, Tech Data will have significant financial and strategic flexibility to drive growth going forward.”
“We have tremendous respect for Tech
Data’s talented management and colleagues around the globe and commend their
success in establishing Tech Data as a leader at the center of the IT
ecosystem,” said Robert Kalsow-Ramos of Apollo Private Equity. “We are excited
to work with the Tech Data team and continuing to invest in the company’s
people and end-to-end portfolio.”
Following the close of the
transaction, Rich Hume will continue to lead Tech Data as chief executive
officer, and the company will continue to be headquartered in Clearwater,
Florida. Tech Data will become a privately held company, and Tech Data’s common
shares will no longer be publicly listed.
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