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Business Observer Wednesday, Nov. 13, 2019 3 weeks ago

Region’s largest public company to be acquired for $5.4B

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Private equity firm Apollo Global Management agrees to buy Clearwater-based Tech Data.

CLEARWATER — Tech Data Corp. (NASDAQ: TECD) has agreed to be acquired, for $5.4 billion, by an affiliate of funds managed by New York-based private equity firm Apollo Global Management Inc.

With nearly $33.6 billion in gross revenue in 2018 — up from $24.19 billion in 2017 — Clearwater-based Tech Data, a distributor of IT products, is the region's largest public company, by revenue. It’s second only to Lakeland-based, privately held Publix Super Markets Inc., in terms of gross annual revenue.

According to a press release, the affiliate of the Apollo Funds will acquire all the outstanding shares of Tech Data common stock for $130 per share — a 24.5% premium for investors who bought shares prior to Oct. 15, the last trading day prior to published market speculation regarding a potential transaction involving the company.

“Over our 45-year history, Tech Data has grown to become one of the largest and most respected technology distributors in the world,” CEO Rich Hume states in the release. “This agreement reflects the significant progress we have made in our strategy of delivering higher value and positions us for continued growth and success. This investment ... 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. 

Pending regulatory and shareholder approval, the deal is expected to close in the first half of 2020, the release states, and will make Tech Data a privately held company. Hume is expected to retain his role and the firm will remain in Clearwater.

“Through this investment, we are committed to expanding Tech Data’s position as a trusted partner to the world's leading technology vendors while providing best-in-class customer service,” states Matt Nord, co-lead partner of Apollo Private Equity, in the release. “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.”

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