Tech Data accepts $5.4bn private equity offer
Consolidation in the channel is not just limited to a reseller level with Tech Data, one of the largest global players in the distribution space, deciding to accept an offer from an investment fund.
An affiliate of funds managed by Apollo Global Management has moved to pick up the distributor in a deal valuing the firm at $5.4bn.
The Tech Data Board has unanimously approved the transaction and recommended that shareholders give it the thumbs up and if all goes to plan it should close in the first half of next year.
Tech Data does have the option to talk to any other suitors in a "go-shop" period that will run until 9 December. But any other offer would have to match the Apollo deal, which is valuing the distributor at a 24.5% premium on the firm's last share price before the speculation about a deal broke.
After the deal closes the current Tech Data CEO Rich Hume will remain in post and lead the firm from its Florida-based headquarters. The main change will be the shift to becoming a private company and no longer being publicly listed.
“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 Hume.
“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," he added.
Matt Nord, Co-lead Partner of Apollo Private Equity, said that it had plans to build on the heritage that Tech Data had already worked hard to establish with vendors and resellers.
“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," he said.
Tech Data will still release its third-quarter fiscal year 2020 results on 26 November but will not be holding a conference call and talking around those numbers given the sale announcement.
Industry: Information Technology News
- Outside IR 35 CONTRACT SC CLEARED Cyber Security Operations Analyst SPLUNK ES- UK REMOTE- £500 a day.
6 month contract Outside IR35 Operational Cyber Security Analyst. Hands on Splunk Security Enterprise and Security clearance is required As is someone that holds SC clearance. SOC and Vulnerability management experience. Vulnerability Analysis / Management - Tenable
- SailPoint Consultant
- Upto €80,000
SailPoint Consultant is need for this rapidly expanding global business, The business is currently in the middle of a SailPoint Deployment, they require an experienced Consultant who is able to help them on this Journey You will be responsible for helping to configure and deploy SailPoint as well as on board applications onto the platform You will also work with the business to understand workflow and process to help align the way the business works to ensure that the business gets the most from the deployment We are looking for an experienced SailPoint consultant who has experience with both Deployment and BAU work and is interested in joining a business which is at the start of an interesting IAM Journey
- SOC Manager Security Operations. SIEM, Threat / Vulnerability, IR, SOC Service- Exclusive
- United Kingdom
SOC Manager- SIEM, Threat / Vulnerability, Incident response. Exclusive Project. Management and on growth growth of Security Operations Centre capability. Managing and maturing the team, technical services line and fronting client engagements where needed. An in-depth technical background is essential, experience across SOC SIEM/ Threat Hunting (IR) tools, processes, techniques, operational is a MUST. The role will include, but not limited to; evolving the technical process, building operational capability, managing and hiring team, involved at a high level overviewing policy/playbooks, fine turning of the go-to-market collateral etc.
- Contact 12 month- Security Operations- Tanium Engineer / Analyst.
- United Kingdom
- Dependent on experience
Security Operations engineer / Analyst with Tanium for a 12 month contract. Experience configuring using, managing, supporting troubleshooting Tanium's suite of end point solutions is essential. The opportunity is due to a client expanding its international capability to a follow the sun model. To be involved in spinning up a European capability. Based in the UK. English essential and ideally being fluent in French.