Tech Data Amends Agreement in Apollo Sale After Third-Party Bid

November 27, 2019

Cleary Gottlieb is representing Tech Data Corp. (Tech Data) in the company’s pending acquisition by funds managed by affiliates of Apollo Global Management Inc. (Apollo).

The transaction originally was entered into on November 12, 2019. In a revised deal, entered into on November 27, 2019, each share of Tech Data common stock will be acquired for an increased price of $145 per share for a total enterprise value of approximately $6 billion.

On November 12, 2019, Tech Data entered into a merger agreement to be acquired by Apollo for $130 per common share in a transaction with an enterprise value of approximately $5.4 billion. The merger agreement provides for a “go-shop” period that runs through December 9, 2019, during which Tech Data is permitted to actively solicit bids from third parties. On November 23, 2019, Tech Data received a competing proposal from a third-party bidder. On November 24, 2019, the Tech Data board of directors determined that the competing proposal constituted a superior proposal and informed Apollo that, absent any developments, Tech Data intended to terminate the merger agreement with Apollo and accept the competing proposal. In response, in the morning of November 27, 2019, Apollo submitted a revised proposal providing for a purchase price of $145 per common share. Later that day, the Tech Data board subsequently determined that the competing proposal no longer constituted a superior proposal and entered into the revised agreement with Apollo.

The transaction is anticipated to close in the first half of 2020, subject to customary closing conditions, including regulatory approvals and approval by a majority of the shareholders of Tech Data.

Tech Data is one of the world’s largest technology distributors. Its end-to-end portfolio of products, services and solutions, highly specialized skills, and expertise in next-generation technologies enable channel partners to bring to market the products and solutions the world needs to connect, grow, and advance. Tech Data is ranked No. 88 on the Fortune 500 and has been named one of Fortune’s World’s Most Admired Companies for 10 straight years.

Apollo is a leading global alternative investment manager with approximately $323 billion in assets under management across credit, private equity, and real assets funds.

For more information, please see the press release here.