Apollo Global Management acquires Tech Data for $5.4 billion

Distributor Tech Data has agreed to sell its outstanding shares to Apollo Global Management for $130 per share, totaling approximately US$5.4 billion in an all-cash deal.

As a result, Tech Data will turn into a private company.

Based in Florida, Tech Data’s key customers include HP, Apple, and Microsoft among others. It currently has a market cap of US$4.68 billion.

The deal was leaked last month in a Reuters report in which it speculated that Apollo was planning on buying out Tech Data and make it private. Tech Data’s stock price subsequently soared as a result.

A press release on the announcement says that the purchase price represents a 24.5 per cent premium to the unaffected 30-day volume-weighted average closing share price of Tech Data’s common stock ending Oct. 15, 2019, the last trading day prior to the Reuters report.

Apollo Global Management is a capital management company. It operates globally, with credit management being its biggest business segment. As of June 30, 2019, it’s managing approximately US$201 billion for its investors.

After today’s announcement, Tech Data’s stock price jumped by US$6.00 from its $125.41 previous closing price, peaking out at US$131.70 and setting a new 52 week high.

 

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Jim Love, Chief Content Officer, IT World Canada

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Tom Li
Tom Li
Telecommunication and consumer hardware are Tom's main beats at Channel Daily News. He loves to talk about Canada's network infrastructure, semiconductor products, and of course, anything hot and new in the consumer technology space. You'll also occasionally see his name appended to articles on cloud, security, and SaaS-related news. If you're ever up for a lengthy discussion about the nuances of each of the above sectors or have an upcoming product that people will love, feel free to drop him a line at [email protected]

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