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martin
wolf Transaction Analysis
Tech Data Receives Bid From Apollo Global Management
*Financial Information
- Enterprise Value: $5 billion
Transaction Facts
- Private equity firm Apollo Global Management (NYSE: APO) approached Tech Data (NASDAQ: TECD) with an offer to acquire the IT distributor for $5 billion, approximately $130 per share in cash, according to a report by Reuters.
- Tech Data shares closed at $111.34 on Tuesday after news broke of the reported acquisition. Shares are up 12.2 percent after market open, trading at $124.61.
- Apollo shares are down 1.0 percent.
martin
wolf
Analysis
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Last Year's Failure, This Year's Success?:
This bid comes a year after Apollo's attempt -- and failure -- to acquire Tech Data rival
Ingram Micro
from HNA Group for up to $7.5 billion (Rumors currently suggest RRJ Capital will acquire Ingram Micro from HNA Group).
- Interest in IT: Apollo has a demonstrated history in the IT channel with notable acquisitions in the MSP, cloud services and IT solutions provider markets. It acquired Rackspace and ADT in 2016 and Presidio in 2015. Apollo voted to sell its 42 percent stake in Presidio to BC Partners in early August of this year.
- Tech Data is Hot: This $5 billion bid comes on the heels of an impressive run for Tech Data. It's financially robust and reported better than expected earnings in late August. The company's revenue is up 2.32 percent, gross profit is up 6.76 percent, and its earnings per share have risen 9.64 percent YoY. In addition, Tech Data continues to beneift from an additive M&A strategy, reaping the benefits of its 2016 acquisition of Avnet for $2.6 billion.
For more information about this reported transaction, click
here to read the article.
*Financial information from the Reuter's article
martin
wolf
was not the advisor in this transaction.
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| About martinwolf
Headquartered in Scottsdale, Arizona with an office in New York, martinwolf is a leading M&A Advisory focused on middle market companies in the IT Services, IT Supply Chain, and Software space. Since 1997, our team has completed more than 160 transactions in over 20 countries and sold eight divisions of Fortune 500 companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com. To learn more about martinwolf, contact Alexa Austin at aaustin@martinwolf.com © martinwolf 2019 |
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Seth Godin
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