Apollo Global Management will now pay $6 billion to acquire Tech Data, up about $600 million from a previous Apollo bid, the distributor disclosed November 27. Excluding debt, the deal is valued at about $5.14 billion, according to Reuters calculations
Apollo, a private equity firm, raised its bid after Tech Data received an alternative takeover offer on November 23. The other mystery bidder apparently was Warren Buffett's Berkshire Hathaway. A "go-shop" period, which allows Tech Data to consider rival bids, continues through December 9, 2019. In other words, there's still a chance that another bidder could emerge and Apollo may need to raise its buyout price for the Tampa, Florida-based distributor yet again.
Tech Data disclosed the original Apollo buyout bid of $5.4 billion in mid-November 2019. That announcement came roughly one year after Apollo attempted (but failed) to acquire Tech Data rival Ingram Micro from HNA Group. (For its part, Ingram also remains the topic of takeover rumors.)
Apollo Global Management has extensive private equity experience in and around the technology sector — particularly as it pertains to MSPs (managed IT services providers) and IT consulting firms. The firm has owned cloud MSP Rackspace since 2016, and has also backed Presidio in the midmarket IT solutions provider sector.