Private-Equity Firm Acquiring Tech Data

Affiliates of private-equity firm Apollo Global Management – once rumored to be considering purchasing Xerox – have signed an definitive agreement to acquire Tech Data for $5.4 billion, or $130 per share.

Tech Data is said to be one of the world’s largest technology distributors, and distributes HP, Apple, Cisco, and Microsoft products, including HP, Lexmark, Epson, and Brother printer supplies.

The Tech Data Board of Directors has unanimously approved the transaction and recommends that Tech Data shareholders vote in favor of the acquisition. The transaction is not subject to a financing condition and is expected to close in the first half of 2020, subject to the satisfaction of customary closing conditions.

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. Tech Data will become a privately held company, and Tech Data’s common shares will no longer be publicly listed.

Tech Data CEO Rich Hume commented: “Over our 45-year history, Tech Data has grown to become one of the largest and most respected technology distributors in the world. This agreement reflects the significant progress we have made in our strategy of delivering higher value and positions us for continued growth and success,” said . “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.”