Apollo Global Management raises its offer to $6 billion to take over Tech Data private, according to the US information technology equipment distributor.
The offered deal is worth $5.14 billion excluding debt, higher than Apollo’s previous offer of $4.77 billion.
Tech Data shareholders will now receive $145 per share, compared to the initial $130 per share, a premium of 12.4% to the closing price of the stocks on Nov. 27.
The technology equipment distribution sector said it was open for other bid offers from third-parties on a “go-shop” period that lasts until Dec. 9 as part of the agreement.
Tech Data has been drawing in strong private equity interest since last year.
Based in Clearwater, Florida, the company has lower operating margins in comparison to its peers, as it focuses on expanding its offerings. It acquired Avnet Inc’s technology solutions business two years ago on a $2.6 billion deal.
The deal between Apollo and Tech Data is set to be finalized in the first half of 2020.
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