An affiliate of certain funds managed by affiliates of Apollo Global Management have completed their acquisition of Tech Data, one of the world’s largest technology distributors. CEO Rich Hume will continue to lead Tech Data from its headquarters in Clearwater, Florida.
The transaction gives Tech Data an enterprise value of approximately $6 billion and included a $3.75 billion equity investment made by Apollo. With approximately 2.5x leverage, Tech Data is one of the highest credit quality, lowest levered sponsor-backed companies.
As part of its go-forward plan, over the next five years Tech Data plans to invest approximately $750 million in digital transformation initiatives to better serve its channel partners. This includes investments in technology to expand its StreamOne Cloud Platform, optimize and standardize processes, and apply data and analytics to be more agile in a rapidly evolving environment.
Pursuant to the terms of the merger agreement, an affiliate of certain funds managed by affiliates of Apollo will acquire all of the outstanding shares of Tech Data common stock. Tech Data’s shareholders are entitled to receive $145 in cash for each share of TECD common stock owned. As a result of the completion of the merger, shares of Tech Data’s common stock no longer trade on the NASDAQ Global Select Market.
