a Clearwater, Fla.-based electronics distributor, announced an agreement to be acquired by private-equity firm
Apollo Global Management
for $130 a share in cash, for a total enterprise value of $5.4 billion.
Tech Data (ticker: TECD) noted that the price is a 24.5% premium to its average share price in the 30 days before a leak about the bid appeared in media reports. Reuters reported last month that the company was considering a bid from Apollo at a $130 a share.
The deal has been approved unanimously by the Tech Data board. It’s not subject to financing conditions and is expected to close in the first half of 2020. Under terms of the deal, Tech Data can actively solicit alternative bids during a “go-shop” period through Dec. 9.
TechData CEO Rich Hume will continue to lead the company, following the deal’s close.
“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,” Hume said in a press release Wednesday.
Tech Data shares on Wednesday are up 3.8%, to $130.22, slightly above the bid price, suggesting some investors hope the go-shop process could turn up a better offer.
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