Funds managed by alternative investment manager Apollo Global Management’s (NYSE: APO) affiliates have agreed to acquire information technology distribution company Tech Data (Nasdaq: TECD) for approximately $5.4B, or $130 in cash per share.
The transaction is expected to be completed in the first half of calendar year 2020, subject to approvals by shareholders and regulators and other customary closing conditions, Tech Data said Wednesday.
Tech Data CEO Rich Hume will continue to lead the firm, which will operate as a private held company in Clearwater, Fla. Hume said the transaction provides the company additional resources to expand its end-to-end platforms, bring to market technology offerings and support channel partners.
Citi, Wells Fargo, J.P. Morgan, RBC Capital Markets and Barclays are funding the transaction, which was unanimously approved by Tech Data’s board of directors.
Bank of America Securities and Cleary Gottlieb Steen & Hamilton LLP serve as financial and legal advisers to Tech Data in the deal.
Citi acts as Apollo’s lead financial adviser in the transaction, while Wachtell, Lipton, Rosen & Katz and Paul, Weiss, Rifkind, Wharton & Garrison LLP respectively serve as corporate counsel and financing counsel to Apollo. Wells Fargo and J.P. Morgan also advise Apollo on the deal’s financial aspect.