1. News
  2. /
  3. Business

Tech Data gets $5 billion bid from Apollo Global, Reuters reports

The Largo company’s stock price soared Wednesday following the report, which the news service based on information from “people familiar with the matter.”
Tech Data's headquarters in Clearwater. The company is one of the largest in the Tampa Bay area. [TD AGENCY  |  Courtesy of Tech Data]
Tech Data's headquarters in Clearwater. The company is one of the largest in the Tampa Bay area. [TD AGENCY | Courtesy of Tech Data]
Published Oct. 16, 2019
Updated Oct. 16, 2019

LARGO — Wednesday was a good day to own Tech Data stock, thanks to a report that a giant private equity firm has offered to buy the Largo-based company for $5 billion.

Shares of Tech Data jumped nearly 12 percent after Reuters reported Tuesday night that Apollo Global Management was interested in an acquisition.

Reuters cited “people familiar with the matter” as its source. Headquartered in New York, Apollo Global has more than $312 billion in assets under management.

Apollo offered to pay about $130 per share in cash for Tech Data, according to Reuters. That news was like rocket fuel for investors.

By mid-day Wednesday, Tech Data’s stock price topped $128 per share, its all-time high. By the market’s close, it had settled to $124.47, up from $111.34 the day before.

RELATED: Tech Data off to a ‘solid start’ but watching tariff and trade issues

Meanwhile, the total market value of the company’s stock rose from a little more than $4 billion Tuesday to about $4.4 billion Wednesday.

Heady stuff, but Reuters also reported that there was no guarantee that Tech Data would even negotiate with Apollo Global. A stock analyst who covers Tech Data had his doubts.

“My gut tells me that Tech Data has no interest in selling at this price,” said Keith Housum at Northcoast Research in Cleveland, Ohio. “It’s just not enough.”

Generally, Housum said, private equity firms are not interested in acquiring technology distribution companies like Tech Data. So something else might be going on.

One possibility is that Apollo Global sees Tech Data as being undervalued, Housum said. Maybe it thinks it can pick up the company, then cut costs, research and development or investments — “whatever they could do to spruce up earnings,” he said — and put it back on the market.

Another scenario is related to a similar report from Reuters in December that Apollo Global was interested in acquiring an electronics distribution firm called Ingram Micro from its Chinese owner, HNA Group. Apollo Global might not have the money to do both acquisitions, Housum said, so signalling an interest in Tech Data could be a way to get HNA to move on Ingram Micro.

Whatever’s going on, neither Tech Data nor Apollo Global were talking Wednesday.

“In keeping with company policy, Tech Data does not provide comment on market rumors or speculation,” Tech Data spokesman Bobby Eagle said in an email to the Tampa Bay Times. A spokesman for Apollo Global likewise declined to comment.

Tech Data is No. 88 on the Fortune 500 list of largest publicly traded companies and has more than 14,000 employees worldwide, 2,000 of them at its headquarters near St. Petersburg-Clearwater International Airport.

The company buys a wide range of servers, computers, printers, phones, cameras, tablets, copiers, scanners, software, cloud services and more from manufacturers like Apple, Cisco Systems and HP. It sells those products and provides service and support to clients in more than 100 countries through a network of 11 logistics centers, six of them in the United States.

Last year, Tech Data had $37.2 billion in annual revenues, which made it Florida’s second largest publicly traded company by revenue, behind only World Fuel Services of Miami.

Contact Richard Danielson at Follow @Danielson_Times

Tech Data a glance

Headquarters: Largo

The business: Buys tech products from Apple, Cisco Systems HP and others, then sells and provides service to clients in 100 countries.

Revenues last year: $32.7 billion, second largest among public companies in Florida

Employees: 14,000-plus worldwide, 2,000 in Clearwater

Fortune 500 rank: 88th

Reported purchase offer: $5 billion from Apollo Global Management


  1. Erica Allums poses for a portrait behind the counter at Banyan Cafe in St. Petersburg while she was still the owner. Now, she's in the process of taking over the MLK spot once again. [Times (2018)] [Tampa Bay Times]
    The Central Avenue location will continue to operate as normal.
  2. A for sale sign is seen in front of a home in the Westchase area of Tampa. CHRIS URSO  |  Times (2013)
    And a spike in cash sales suggests investors were active in the market.
  3. Florida's unemployment rate hit a record low in December. (AP Photo/Lynne Sladky, File) [LYNNE SLADKY  |  AP]
    Nearly every major job sector posted gains from a year earlier.
  4. A proposed bill in the Legislature would set a statewide referendum on whether to amend Florida's constitution to add a year to the period when home buyers can transfer their accumulated benefits under the Save Our Homes cap on property assessments to a new home. Pinellas County Property Appraiser Mike Twitty says going from two years to three would reduce the possibility that construction delays in a booming real estate market would prevent some buyers from meeting the deadline, costing them potentially thousands 
 of dollars in property tax savings. [SUSAN TAYLOR MARTIN | Times (2019)]
    The bill, the idea of Pinellas County Property Appraiser Mike Twitty, would give buyers another year to transfer their tax savings under Florida’s Save Our Homes assessment cap to a home they’ve...
  5. The Tampa Bay Times' headquarters in downtown St. Petersburg. [CHRIS URSO  |  Times]
    No customer information was compromised. The Times is removing the malicious code.
  6. Concentrix has told the state of Florida that it plans to lay off as many as 174 employees from one of the programs it has at the Interstate Corporate Center east of Tampa. This is the same call center hit with 245 layoffs announced in November. (Google street view photo) [Google Street View]
    In November, Concentrix, the California multinational company that runs the center, announced the layoffs of 245 employees.
  7. Loreen Spencer (left) and Sue Watts, the two newest members of HCI Group's board of directors. [HCI Group]
    “I just wish I had thought of this earlier,” the chairman and CEO said.
  8. Tampa-based WellCare Health Plans will become the headquarters for Medicare and pharmacy operations now that it has been acquired in a $17 billion cash and stock deal by Centene Corp., base in St. Louis. (Times files)
    New owner Centene said it “expects to maintain strong operations in Tampa,” which is anticipated to be the headquarters for its Medicare and pharmacy operations.
  9. A Publix chicken tender sub sandwich. Pub Subs are now easier to order through Instacart grocery deliveries. [CHRIS URSO   |   Times]
    New Instacart Meal program to make Pub Sub orders a breeze, according to the grocery delivery app.
  10. Johanna Santiago, 50, of Riverview, hopes to start selling her Joba Sofrito early this year. Santiago developed the product, a savory Puerto Rican cooking sauce, with help from the nonprofit Enterprising Latinas in Wimauma. [MARTHA ASENCIO RHINE  |  Times]
    Selling food and crafts, three women are among the dozens who turned to the organization for training in 2019.