https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Master Agents
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
    • Diversity & Inclusion
  • MSSP Insider
  • MSP 501
    • Back
    • Apply Now
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • Videos
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
    • Channel Educational Series
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
    • Channel Convergence
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Content Resources
  • Awards
    • Back
    • 2021 MSP 501
    • Circle of Excellence
    • Excellence in Digital Services
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • DE&I
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Master Agents
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
    • Diversity & Inclusion
  • MSSP Insider
  • MSP 501
    • Back
    • Apply Now
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • Videos
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
    • Channel Educational Series
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
    • Channel Convergence
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Content Resources
  • Awards
    • Back
    • 2021 MSP 501
    • Circle of Excellence
    • Excellence in Digital Services
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • DE&I
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Agents
  • Cloud Service Providers
  • Channel Partners Events
 Channel Futures

Distribution


Shutterstock

Business Handshake

Tech Data Goes Private in Sale to Equity Firm

  • Written by Lynn Haber
  • November 13, 2019
The distribution giant joins a growing trend.

The future of distribution continues to morph as exemplified by Wednesday’s announcement of the pending acquisition of 45-year old Tech Data by private equity firm Apollo Global Management in a deal estimated at $5.4 billion. A publicly traded company, the distributor will become private after the transaction closes.

The news comes on the heels of recent Tech Data acquisition rumors and the signing of an agreement by Tech Data to acquire DLT Solutions, a 30-year old company that provides IT solutions for the U.S. public sector.

Tech Data's Richard Hume

Tech Data’s Richard Hume

“Over our 45-year history, Tech Data has grown to become one of the largest and most respected technology distributors in the world. This agreement reflects the significant progress we have made in our strategy of delivering higher value and positions us for continued growth and success,” said Rich Hume, CEO at Tech Data. “This investment of funds managed by one of the world’s leading global alternative investment managers will afford us additional resources to accelerate our ability to bring to market the technology products and solutions the world needs to connect, grow and advance. This transaction will enable us to build on our success, making Tech Data a growth platform and enabling us to further differentiate and expand our end-to-end solutions and provide our channel partners with unparalleled reach, efficiency and expertise.”

Hume will retain his leadership position at Tech Data, which he’s had since 2018.

The Clearwater, Florida, distributor reported $37.2 billion in sales in fiscal 2019 and is ranked number 88 on the Fortune 500. Tech Data has made numerous global acquisitions since its founding, one of the more recent and notable being Avnet’s Technology Solutions business for $2.6 billion, in 2017. The acquisition expanded Tech Data’s capabilities in next-gen technologies and also established a presence in Asia Pacific.

Keep up with the latest channel-impacting mergers and acquisitions in our M&A roundup.

That deal was a sign of the times, as Tianjin Tianhai, a Chinese shipping group, bought Ingram Micro earlier in the year, ScanSource acquired master-agent Intelisys and Synnex completed the acquisition of Westcon-Comstor Americas business in 2017.

Tech Data has approximately 100 vendors on its advanced solutions line card for U.S. and Canada, including Cisco, Dell EMC, HPE, Hitachi Vantara, IBM, Lenovo, Oracle, and VMware to name a handful. There are even more vendors on the distributor’s endpoint solutions line card.

We have tremendous respect for Tech Data’s talented management of colleagues around the globe and commend their success in establishing Tech Data as a leader at the center of the IT ecosystem,” said Robert Kalsow-Ramos of Apollo Global Management. “We are excited to work with the Tech Data team and continuing to invest in the company’s people and end-to-end portfolio.”

The deal is expected to close in the first half of next year.

“[The Tech Data deal] is not surprising, as many of the classic or ‘traditional’ distributors are struggling to provide significant value to their customers (channel partners) in an ever-increasing subscription world,” Diane Krakora, principal at channel consultant PartnerPath. “Apollo is likely going to restructure Tech Data to increase operational efficiencies (for example, do more with fewer people) and produce new services that provide more value to the channels and brands/vendors in cloud/subscription models — likely expecting to charge additionally for these offerings like business intelligence data (who is buying what products and what is sold together) and services like customer provisioning and cloud marketplaces.”

Tags: Agents Distribution Mergers and Acquisitions

Related


  • Merge road sign
    Agents Voice Concerns, Hopes for Master Agent Consolidation
    Subagents weigh in on how mergers and acquisitions could impact them long-term.
  • View of globe from space
    8x8 Joins Microsoft as Westcon Partner to Spur International Growth
    The partnership starts in the United Kingdom and Ireland this month.
  • Pink slip, layoff, termination
    T-Mobile Acquisition Fallout: Shentel Wireless Job Cuts Create 'Disruption and Uncertainty'
    T-Mobile is acquiring the Shentel assets for nearly $2 billion in cash.
  • Top Stories
    Top 20 Channel Stories in March: Telarus, Synnex-Tech Data, Microsoft Hack
    Mergers and acquisitions play a big part in our top stories countdown.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • RingCentral Buying Kindite for Enhanced Security Capabilities
  • Telarus Buys Master Agent, Hires ScanSource Exec, Says Goodbye to Blohm
  • Nextiva Hires Synnex Vet as Distribution Lead
  • NetSapiens Partners Get First Formal Partner Program for Collaborative Selling

Galleries

View all

AT&T, Comcast, Cisco, Microsoft, 8×8 Unveil New Products, Services

April 15, 2021

Industry Perspectives

View all

How Tech Is Transforming Public Safety–and the Implications for Channel Partners

April 15, 2021

Exercising Your Organization’s Data Loss Recovery Abilities

April 13, 2021

Why MSPs Need to Shift from Cyber Security to Cyber Resilience

April 13, 2021

Webinars

View all

What to Look For: 2021 Threat Report

April 22, 2021

Health Care and SD-WAN: A Seller’s Guide

April 27, 2021

How MSPs Can Leverage SOCaaS to Improve Security & Grow Revenue

May 4, 2021

White Papers

View all

Carbonite Data Protection and Cyber Resilience

April 15, 2021

Top Tips: How Resellers Can Leverage Rackspace to Enhance Customer’s Cyber Security Protection with Microsoft 365 Security

March 30, 2021

Top Tips: Optimize Your Microsoft 365 Investment with Rackspace Technology

March 30, 2021

Upcoming Events

View all

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

MSP Summit

November 1, 2021 - November 2, 2021

Channel Evolution Europe

November 30, 2021 - December 1, 2021

Videos and Fastchats

View all

5 Reasons Diversity, Equity and Inclusion Is Important

Five9 Shares Insights on Implementing a DE&I Strategy

April 13, 2021

FASTCHAT: How Fortinet Reduces Complexity Through Networking, Security

March 31, 2021

Strong Customer Experience Needs Strong Partner Experience

December 22, 2020

Twitter

ChannelFutures

RT @alysfitz: 67% of respondents reported burning out since the COVID-19 pandemic hit. We need to do better to support #WomenInTech, especi…

April 16, 2021
ChannelFutures

RT @AllianceofCW: #ACW members Mayka Rosales-Peterson and Raquel Wiley were elected to @ChannelFutures' #Diversity, #Equity, & #Inclusion B…

April 16, 2021
ChannelFutures

.@ZiplyFiber rolls out agent #partnerprogram. #networking dlvr.it/RxmM4K

April 16, 2021
ChannelFutures

New #Microsoft #SurfaceLaptop4 is an incremental update with an improved CPUs webcam, speakers and dual mics.… twitter.com/i/web/status/1…

April 16, 2021
ChannelFutures

.@okta hires @InsightEnt vet as global channel chief. #cybersecurity dlvr.it/RxmM20 https://t.co/ImWRZp2qHt

April 16, 2021
ChannelFutures

These technology trends are transforming #public safety @GetWirelessLLC #firstresponders #cloud #connectivity #IoT… twitter.com/i/web/status/1…

April 15, 2021
ChannelFutures

.@intel has appointed 24-year Intel veteran Dawn Jones as chief diversity and inclusion officer (CDIO) and vice pre… twitter.com/i/web/status/1…

April 15, 2021
ChannelFutures

.@Allied_MR: @F5, @FireEye, @IBM among leaders in rapidly expanding global #cybersecurity market.… twitter.com/i/web/status/1…

April 15, 2021

MSSP Insider

Business advice for MSSPs and news from the broader security channel.

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Galleries

Educational slide shows and images from live events.

Media Kit And Advertising

Want to reach our audience? Access our media kit.

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Events
  • Telecoms.com
  • MSP 501
  • Black Hat
  • IoT World Today
  • Omdia

WORKING WITH US

  • Contact
  • About Us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X