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.
source computerweekly
Industry: Information Technology News
Latest Jobs
-
- Threat and Vulnerability Analyst / Penetration Tester. London
- London
- 55000
-
Threat and Vulnerability Analyst / Penetration tester needed. Threat and Vulnerability Analyst needed. Immediate opportunity. Must be able to commute to London min 2 days a week. The individual will join a highly technical team that is responsible for identifying vulnerabilities and threat in various applications / coding with a view of driving remediation and change. This is a critical role. The ability to achieve SC clearance is a must. A deeply technical Linux Redhat background with, penetration testing / code review / threat detection background is essential. Looking to hire immediately. Apply today for more information.
-
- Security Auditor / 3rd Party Assurance. London. End user
- London
- 60000
-
Security Auditor / 3rd Party Assurance. London. End user The Security Auditor / 3rd Party Assurance role has two key functions. Manage the ongoing assessment of new and existing 3rd party suppliers to ensure they meet the internal policies / controls. (Reassessment etc) Internal Auditing across business to ensure various departemnt / operations are compliant and inline with internal ISMS etc. ISO 27001 internal audit experience, creation of audit reports experinece essential. This is an internal business so broad experience across a multiple technology environment (cloud and on prem) is highly desirable. MUST be able to engage and work with senior stakeholders in an often faced pace environment. ISO27001, NIST, CISSP, CISA Risk assessment experinece needed This is a permanent role.. Blend of technical and consultative approach needed. This role will require someone to travel to London a few days a week once lock down permits and their offices fully reopen. All details kept in confidence. Apply today to find out more.
-
- Security Auditor / 3rd Party Assurance. London. End user
- London
- 60000
-
Security Auditor / 3rd Party Assurance. London. End user The Security Auditor / 3rd Party Assurance role has two key functions. Manage the ongoing assessment of new and existing 3rd party suppliers to ensure they meet the internal policies / controls. (Reassessment etc) Internal Auditing across business to ensure various departemnt / operations are compliant and inline with internal ISMS etc. ISO 27001 internal audit experience, creation of audit reports experinece essential. This is an internal business so broad experience across a multiple technology environment (cloud and on prem) is highly desirable. MUST be able to engage and work with senior stakeholders in an often faced pace environment. ISO27001, NIST, CISSP, CISA Risk assessment experinece needed This is a permanent role.. Blend of technical and consultative approach needed. This role will require someone to travel to London a few days a week once lock down permits and their offices fully reopen. All details kept in confidence. Apply today to find out more.
-
- Head of Penetration Testing, UK based, Flexible location.
- United Kingdom
- Upto £100,000 plus excellent benefits
-
Head of Penetration Testing needed to join a security consultancy that are delivering client facing penetration testing services around Web app and Infrastructure. Looking for someone hands on that is able to manage a highly skilled technical team of testers. 50-60% of the time is expected to be hands on, other duties will include, but not be limited to; leading and managing the day to day running of the team, mentoring, team upskill, recruitment, reporting, escalation, process improvement etc. Flexible location although south east is preferred. Anyone with Check / CREST experience is highly desirable. MUST be able to achieve SC clearance. UK based role. All details kept in confidence.