Distribution giant Tech Data has agreed to be acquired by Apollo Funds for $5.4 billion in a distribution game changer that will take the company private.
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, Fla. Tech Data will become a privately-held company, and Tech Data’s common shares will no longer be publicly listed.
Hume said the deal represents a chance for Tech Data to enlist new money to enhance its offerings to channel partners as well as differentiate its products from competitors.
“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,” he said in a statement. “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.”
Tech Data’s board voted unanimously in favor of accepting the $130 per share offer, which is expected to close in the first part of 2020. The deal was financed through Citi, J.P. Morgan, Wells Fargo, Barclays and RBC Capital Markets. Bank of America Securities is serving as financial advisor to Tech Data, and Cleary Gottlieb Steen & Hamilton LLP is acting as legal counsel.