Tech Data has announced it has entered into a definitive agreement to be acquired by private equity firm Apollo Global Management for $5.4 billion.
Equating to $130 per share, the deal will take the Clearwater-based distribution giant private, with common shares no longer publicly listed following the transaction.
Rich Hume, who will continue to lead Tech Data as chief executive officer, said the sale will enable the firm to build on its current success and offer partners "unparalleled" distribution.
"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," said Rich Hume, Tech Data CEO.
"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 to approve the transaction, which Tech Data said is not subject to financing conditions and is expected to close in the first half of 2020.
Under the terms of the agreement, Tech Data is also now permitted to actively solicit alternative acquisition proposals from third parties during a "go-shop" period until 9th December.
"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," commented Charles E. Adair, lead independent director of the Tech Data board of Directors.
"The transaction delivers significant cash value to our shareholders and creates exciting opportunities for our colleagues, channel partners and other key constituents."
Tech Data said it plans to release its third-quarter fiscal year 2020 results before market open on 26th November – but will not be holding a corresponding conference call due to the pending transaction.
