Private equity firm Apollo Global Management has agreed to acquire technology equipment company Tech Data for $5.4 billion. The transaction includes the assumption of the target’s debt.
Apollo will pay $130 per Tech Data share in cash. This is a premium of about 24.5% to the closing price on October 15 – the last trading day before media reported on the possible deal.
As part of the agreement, Tech Data said it will solicit alternative offers from other parties until December 9. Following the closing of the transaction, the target’s CEO Rich Hume will retain his role.
Apollo will take Tech Data private, and its shares will be delisted. The two companies expect to close the deal in the first half of next year.
Clearwater, Florida-based Tech Data provides information technology infrastructure to corporate re-sellers and retailers.
“Over our 45-year history, Tech Data has grown to become one of the largest and most respected technology distributors in the world,” Hume said.
In 2016, Tech Data acquired Avnet’s technology solutions division for $2.6 billion in cash and stock. At the time, Tech Data said that the acquisition allows it to focus on its core strategies.
Bank of America Securities served as financial adviser to Tech Data, while Cleary, Gottlieb, Steen & Hamilton acted as is its legal counsel.