Mobile and IT distributor TechData is to be acquired for $5.4 billion (£4.2bn) by investment firm Apollo Global Management
TechData’s board is recommending shareholders accept the offer, which represents a 24.5 per cent premium on the company’s share price, and expects the deal to close in the first half.
The deal is not subject to financing and Apollo says it will provide TechData with the financial and strategic flexibility it needs to grow. Current chief executive Rich Hume will continue in his role after completion and the company will remain in Clearwater, Florida.
“Over our 45-year history, Tech Data has grown to become one of the largest and most respected technology distributors in the world,” said Hume. “This agreement reflects the significant progress we have made in our strategy of delivering higher value and positions us for continued growth and success.”
“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.”
TechData has a significant UK presence, claiming to offer end-to-end technology services and expertise to customers. The company was named mobile distributor of the year at the 2019 Mobile Industry Awards and its Tech-as-a-Service product, which wraps hardware, software and services into a single subscription, was named Best Enterprise Service & Solution.