Acquisition gives Tech Data $6bn enterprise value
Tech Data will see approximately $750 million dollars of investment in digital transformation in the next five years, after its acquisition by Apollo Global Management was completed yesterday.
Apollo first announced its acquisition of the distributor in a deal worth $5.4 billion last November. As a result of the move, Tech Data will become a privately held company and its shares will no longer be publicly listed.
The digital transformation initiatives will focus on adding automation and analytics platforms to Tech Data’s processes, including its StreamOne Cloud Platform, so that it can better adapt to what it calls “a rapidly evolving environment”.
“Tech Data’s acquisition by the Apollo funds is a significant milestone, and their support of our multi-year commitment of resources underscores our collective focus on long-term value creation,” said Tech Data CEO Rich Hume (pictured).
“We continue to execute on our strategy to transform our company into one that defines a new standard of operational and cultural excellence in our industry. We believe Apollo will be an invaluable partner in helping us better enable our channel partners to bring to market the technology products and solutions the world needs to connect, grow and advance.”