(Reuters) – Private equity firm Apollo Global Management <APO.N> has raised its bid to take Tech Data <TECD.O> private in a deal valued at about $6 billion (£4.6 billion), the U.S. information technology equipment distributor said on Wednesday.
Excluding debt, the deal is valued at about $5.14 billion, up from a previous offer of $4.77 billion, according to Reuters calculations.
Tech Data shareholders will now receive $145 per share in cash, up from $130 per share, representing a premium of 12.4% to the stock’s closing price on Nov. 27.
Tech Data had said it would solicit alternative acquisition proposals from third-parties during a “go-shop” period until Dec. 9 as part of the deal agreement.
The technology equipment distribution sector has attracted strong private equity interest in the last year. In January, buyout firm CVC Capital Partners acquired ConvergeOne Holdings Inc, a distributor of networking and collaboration products, for $1.8 billion.
Based in Clearwater, Florida, Tech Data has lower operating margins than some of its peers, as it invests in expanding its offerings. Two years ago, it acquired Avnet Inc’s <AVT.O> technology solutions business for $2.6 billion.
The company said the deal is expected to close in the first half of 2020.
Bank of America Securities is the financial adviser to Tech Data, and Cleary Gottlieb Steen & Hamilton LLP is its legal counsel.
Apollo Global did not immediately respond to a Reuters request for comment.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Aditya Soni)