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
-
- Security Analyst. Financial Services. UK. Permanent
- Unknown
- N/A
-
CH7863 Security Analyst. End User . Financial Services Security Analyst needed to monitor and manage a security suite of tools within an End User environment. The Security Analyst will be responsible monitoring, configuring, fine tuning, incident management and generally improving the security tool capability. Specific experience with CyberArk, Tripwire Log Center and Tripwire Enterprise is highly desirable). Current experience with Vulnerability management and penetration testing is highly desirable. Specifically the ability to effectively manage 3rd party pen tests. You will be working within a specialist security team reporting to the CISO. Experience working within an end user environment within financial services is highly desirable. Flexible location. This is an exclusive role to DCL Search & Selection. To book a call please use my Calendy link https://calendly.com/chris-holt/arranged-call-with-chris-holt-soc-role-
-
- DevSecOps - Security design / review consultant. SC Clearance. London
- London
- N/A
-
CH7858 London £70,000 DevSecOps - Security design / review consultant. DevSecOps - Security design / review consultant will ensure that newly created, public facing apps are secure by design and by default by aligning them to current / best practice security policies and standards into the design phases. The individual must have a technical software / application development background with specalist experinece in secure architecture design. (Frameworks, processes, best practice etc) Practical experience translating and ensuring that the OWASP top 10, ISO27001, HMG frameworks requirements are reviewed and embedded into project designs which are implemented is essential. Experience working projects through a full development lifecycle is key. You will work along side the design and project teams to idenitfy and mitigate risks throughout the design phases. This is a permanent role. SC clearance is essential as is the ability to get to the London office. (When appropiate #covid) Security DevSecOps consultant. To arrange a discreet call book via https://calendly.com/chris-holt/devsecopp--security-design-review-consultant
-
- CONTRACTOR Cyber Vulnerability Analyst, NESSUS, Rapid 7, SC clearance required.
- London
- N/A
-
Cyber Vulnerability analyst NESSUS, Rapid 7, needed for IMMEDIATE 3 month contract MUST have / be able to achieve UK SC clearance role to work within a live environment within a public sector department. The individual must have experience in using various security methods and tools such as Rapid7 and NESSUS scan for / identify vulnerabilities, prioritise them according to risk and raise appropriate tickets for remediation / follow up. In depth experience utilising Nessus highly beneficial. Current cyber public sector experience highly desirable.
-
- Internal Security Auditor, Level 1 Service Provider (ISO27001)
- London
- Upto 55,000 plus benefits
-
Internal Security Auditor ISO 27001, PCI, needed to join a Cyber team within this expanding Fintech business. The Internal Security Auditor will have end to end responsibility for planning, delivering, remediating any findings etc. Experience working within financial services is highly desirable. This Is a great time to join a newly formed and growing Cyber team within a rapidly expanding fintech, that is taking a major share of its market. We are looking for someone with experience, (but not to be limited to) a mix of Information Security standards, frameworks, audit principles, controls / policies and the management and use of the technical tooling etc. ISO 22301, ISO 27001, NIST Cybersecurity Framework etc An ideal candidate will be working within an end user environment with a cyber consultancy background. Experience taking a company through accreditation is highly desirable Experience managing internal stakeholders, technical teams and external third parties essential Flexible working, but with the ability to get into London. This is an exclusive role to DCL Search & Selection.