Tech Data's shares spike on rumoured $5bn takeover approach

Apollo Global wants to buy global distributor after talks with Ingram came to nothing, according to Reuters report

Tech Data's shares have spiked following a report that it is the subject of a near $5bn takeover approach.

According to a report today by Reuters, private equity firm Apollo Global Management is offering to pay about $130 a share for the global distribution giant. It cited "people familiar with the matter".

Tech Data's shares have hiked 14 per cent in after-hours trading this evening.

Apollo was linked with a $7.5bn bid for Tech Data's arch-rival Ingram late last year.

Reuters stressed that Apollo declined to comment and that Tech Data did not respond to its requests for a comment, adding that its sources said there is no certainty Tech Data will engage in negotiations or that any deal will occur.

CRN has additionally approached Tech Data for comment.

Having acquired Avnet Technology Solutions in 2016, NASDAQ-listed Tech Data has 14,000 employees and turned over $37.2bn in its fiscal 2019. It claims to work with 125,000 IT resellers worldwide.