Menu
Tech Data buyout bumped up to US$6B after rival bid

Tech Data buyout bumped up to US$6B after rival bid

Increases offer to $145 per share in cash

Credit: Tech Data

Tech Data has struck an amended acquisition deal worth US$6 billion with its private equity buyer, after receiving a rival bid from another interested party.

The distributor told shareholders on 27 November that it had entered into an amendment to its previously announced definitive agreement with Tiger Midco, an affiliate of funds managed by affiliates of Apollo Global Management.

It emerged in mid-November, after weeks of speculation, that private equity firm Apollo Global Management had entered a deal to acquire Tech Data for US$130 per share, effectively valuing the deal at US$5.4 billion.

However, Tech Data received a company takeover offer from another bidder on November 23. It was found that the competing offer constituted a superior proposal.

In response, on November 27, Tiger Midco submitted a revised proposal, increasing its offer to $145 per share in cash from $130 per share in cash, among other changes.

With the revised deal on the table, the Tech Data board ultimately determined that the competing offer no longer constituted a superior proposal.

The revised transaction has an enterprise value of approximately US$6 billion, substantially more than the value of the initial deal. Indeed, the revised purchase price represents an 11.5 per cent increase in the price per share of Tech Data’s common stock provided in the original agreement.

The transaction, as it stands, is expected to close in the first half of calendar year 2020, subject to the satisfaction of customary closing conditions.

It is expected that Tech Data CEO Rich Hume will continue to lead the company, which will remain at its Clearwater, Florida headquarters. Tech Data board of directors unanimously approved the transaction and recommend shareholders to vote in favour of the deal.

As a result of the buyout, Tech Data will become a privately held company.

"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,” Hume said when the initial deal was announced.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags tech dataApollo Global ManagementTiger Midco

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments