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
-
- VOIP / SIP App Developer. Contract. SIP | VOIP experience needed. SC Cleared Outside IR35 Contract. London
- London
- OUTSIDE IR35
-
SIP | VOIP Developer. SC Cleared Contract. London Looking for a SC Cleared SIP / VOIP Developer to develop an application that interacts with a set of voice and video signalling API’s You will also work on developing in-house applications, browser plugins and automated tooling to support secure communication systems. Responsibilities Develop an application that will manage number mapping and associated identities using commercial SBC API’s. Develop new user-facing features using React.js or other modern JavaScript frameworks. Build reusable components and front-end libraries for future use. Collaborate with the design team to translate UI/UX design wireframes into code. Work closely with backend developers to integrate front-end code with server-side logic. Conduct code reviews and provide constructive feedback to team members. Stay up-to-date on emerging technologies and industry trends to continuously improve our front-end development practices. Troubleshoot and debug issues that arise during development and in production environments. Maintain high coding standards and practices and ensure code is well-documented. Requirement Experience of developing specialist applications using REST API’s. Good knowledge of Go, Java and Python (open to alternative combinations of languages). Proficiency in front-end languages and frameworks such as HTML, CSS, JavaScript, React.js, etc. Strong understanding of web standards, responsive design, and cross-browser compatibility. Experience with version control systems such as Git. Knowledge of RESTful APIs and asynchronous request handling. Familiarity with UI/UX design principles and tools.
-
- Senior Data Privacy Consultant. Client Facing | London
- London
- N/A
-
Senior Data Privacy Consultant. Client Facing | London Senior Data Privacy Consultant needed for a key client facing opportunity. Must be willing to undergo SC Security Clearance. Hybrid role- onsite with customer / office 2-3 days a week. London Key Responsibilities: Lead and support client facing data privacy projects. Assess compliance, define and deliver strategic projects / implement privacy solutions. Manage project teams and develop business opportunities. Required Experience: Experience in data protection and privacy standards. Background in consulting. Skills and Qualifications: Business consulting experience IAPP Privacy Manager / Privacy Technologist Location Greater London UK based role. Not able to provide VISA sponsorship.
-
- Security Analyst - Internal role. London commutable. Permanent
- London
- N/A
-
Security Analyst - Internal role. London commutable opportunity. Operational Security - Investigate, escalate and proactively work to ensure household name remains protected. Project Security - Coordinate, log change requests with project delivery teams to meet security requirements Policy / compliance - work with team to aid in uplifting these as and where needed This role is role to investigate, escalate and proactively work to protect a globally recognised brand. You must have current hands on operational analytical security experience with Microsoft technology stack Someone with a SOC Analyst / security engineering background would be well suited. This position will join a small team and would suit someone that has broad experience across the security threat landscape. Experience / knowledge across industry GRC standards such NIST, ISO27001 etc very advantageous and a priority. You will work across multiple teams proactively working to secure the business. Must be able to commute to Central London 3 days a week. Visa sponsorship not available Apply today to find out more.
-
- Network / Security Infrastructure Engineer | West London | Permanent
- London
- N/A
-
Network / Security Infrastructure Engineer | West London | Current Config, Install, upgrade experience On prem / Datacetner experience essential. Hands on experience MUST include: Routing, Switching, Network Security (firewall, IDS etc), Microsoft exchange / Exchange 365. Scripting / automation experience wanted. Python, Powershell etc Regular travel to West London is required. Visa sponsorship not available. Apply today for more information chris.holt@dclsearch.com Use this whatapp link to reach out https://wa.me/message/6USF5RAQBOZIP1