Tech Data sells to Apollo for $5.4 billion

Tech Data Corp. (Nasdaq: TECD), the largest company by revenue in the Tampa-St. Pete area, is being acquired by private equity firm Apollo Global Management in a deal valued at $5.4 billion.

Apollo affiliates will buy all of Tech Data’s stock paying $130 a share, a 24.5 percent premium over the average stock price for the last 30 days, a news release said.

Tech Data and Apollo confirmed the transaction about a month after speculation first emerged about the deal.

Tech Data, an IT distributor headquartered in Clearwater, has until Dec. 9 to look for a better offer from other potential buyers, but there’s no guarantee that process will lead to a better deal, the news release said.

The Apollo deal is expected to close in the first half of 2020. Tech Data will remain headquartered in Clearwater after the deal closes, and Rich Hume, named CEO last year, will stay on as CEO, the news release said.

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

The Apollo acquisition will allow Tech Data to build on its success and give the company more resources to speed up its ability to bring technology products and solutions to market, he said.

: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,” said Matt Nord, co-lead Partner of Apollo Private Equity.

Tech Data was founded by Edward Raymund in the early 1970s to market data processing supplies. The company transitioned to a wholesale supplier about 10 years later. Edward Raymund sold the company to his son Steve Raymund in 1984 for $10,000. Steve Raymund was CEO until 2006, and was chairman of the board until 2017.

Tech Data reported $37.2 billion in sales in the fiscal year ended Jan. 31, 2019. The company has more than 14,000 employees globally, including more than 2,000 at its Clearwater headquarters.