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Apollo Raises Takeover Bid for Tech Data to $6B

Jeff Brody

Tiger Midco, an affiliate of funds managed by alternative investment manager Apollo Global Management’s (NYSE: APO) affiliates, has increased its offer to acquire information technology distribution company Tech Data (Nasdaq: TECD) from $130 in cash per share to $145 per share, or approximately $6B, under an amended deal.

Tech Data agreed to sign an amendment to a previously announced deal with Tiger Midco after the latter moved to raise its takeover offer in response to a proposal submitted by another bidder, Apollo said Wednesday.

The amended deal reflects an increase of 11.5 percent in the price per share of Tech Data’s common stock as stated in the original agreement announced in mid-November.

Tech Data’s board unanimously cleared the transaction, which is expected to be completed in the first half of calendar year 2020, subject to approvals by shareholders, antitrust and foreign regulators and other customary closing conditions.

The revised deal allows Tech Data to continue to solicit offers from interested buyers through Dec. 9.

Bank of America Securities advises Tech Data on the transaction’s financial aspect, while Cleary Gottlieb Steen & Hamilton LLP serves as legal counsel.

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