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Apollo Global Reportedly Offers $5B Bid For Tech Data

The offer by a major private equity company to acquire Tech Data follows by less than two months reports that RRJ Capital is looking to invest $4 billion in Ingram Micro, which is currently owned by China-based HNA Group.

Tech Data is the latest major IT distributor to receive interest from private equity, according to Reuters.

Private equity firm Apollo Global Management has initiated discussions with Clearwater, Fla.-based Tech Data to acquire the distributor for about $5 billion, according to Reuters, which cited unnamed sources close to the deal.

The offer from Apollo is about $130 per share, a significant premium over the company's current share price, Reuters reported. However, Tech Data has not necessarily engaged with discussions about the buyout offer.

[Related: Tech Data's Joe Quaglia On SMB Services, Trade War Impact And A Possible HNA-Ingram Micro Deal]

Tech Data closed the trading day at $111.33 per share. However, in after-hours trading, its share price rose to the $126 to $127 per share range.

Tech Data told CRN via email that it does not provide comment on market rumors or speculation. Apollo Global Management declined to comment as well.

Tech Data is the second major distributor in the last two months to have received private equity interest.

Bloomberg and Reuters in late August reported that Hong Kong-based investment group RRJ Capital is looking to make a $4-billion investment in Irvine, Calif.-based Ingram Micro, which is currently owned by China-based HNA Group. Neither RRJ Capital nor Ingram Micro have commented publicly on that reported offer.

HNA, which late 2016 acquired Ingram Micro in a $6-billion deal, has according to multiple reports been looking to sell many of its assets, including Ingram Micro, after having over-extended itself in a multi-year international acquisition spree.

Reuters reported that Apollo last year made an unsuccessful bid to purchase Ingram Micro for $7.5 billion.

O'Ryan Johnson contributed to this story.

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