LARGO — A Bangalore, India technology distributor has told Tech Data thanks but no thanks to a proposed purchase.
Inflow Technologies exercised its right to withdraw from the acquisition and paid a break fee to leave the deal, Tech Data announced Monday. Terms of the acquisition, which was announced in December, and the break fee were not disclosed.
“We respect Inflow’s decision to go in a different direction,” Tech Data president for Asia Pacific Jaideep Malhotra said in an announcement that the deal had fallen through. “Tech Data is committed to our strategy of delivering higher value by strengthening our end-to-end portfolio and optimizing our global footprint, and we continue to explore opportunities to grow our business in alignment with this strategy.”
Inflow Technologies, with offices around India and southern Asia, buys products from technology manufacturers and sells them to resellers and end users in areas such as cybersecurity, networking, storage and server management, infrastructure and application software. Tech Data offered to buy the company to enhance its footprint in the Asia-Pacific market, which accounts for about 3 percent of Tech Data’s global sales.
Monday’s news came just two days before Tech Data shareholders are scheduled to vote whether to sell the company to Apollo Global Management for $6 billion. The giant New York private equity firm originally offered $130 per share for Tech Data’s stock, then raised its offer to $145 per share just before Thanksgiving in response to a $140 offer from billionaire investor Warren Buffett.
If shareholders and regulators approve, the $6 billion sale is expected to close sometime early this year. When that happens, Tech Data, No. 88 on the Fortune 500 list of largest publicly traded U.S. companies, would become privately held and would no longer trade on any stock exchange.