Tech Data has a definitive agreement to be acquired by funds managed by Apollo Global Management. The deal has an enterprise value of approximately $5.4bn.
Apollo will pay $130/share, a 25% premium to the 30-day volume weighted average closing share price ending October 15th, the last day prior to market M&A speculation.
Matt Nord, Co-lead Partner of Apollo Private Equity, said: “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.”
Rich Hume, CEO, Tech Data, added: “This investment 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."
Following the close of the transaction, Rich Hume will continue to lead Tech Data as CEO, and the company will continue to be headquartered in Clearwater, Florida.