CLEARWATER, Fla. - TechData, the 88th largest publicly traded company and one of the Bay Area’s largest employers, will be acquired by Apollo Management’s private equity firm in a deal worth $5.4 billion.
The two companies did not return FOX 13’s request for an interview but said in a news release TechData will continue to remain headquartered at its current Clearwater location.
Geoff Simon is a financial analyst with Raymond James and says right now, this is not a bad thing or a good thing for the area.
“If TechData continues running as it has been, it should be neutral for the area,” Simon said. “Right now, the announcement is TechData is staying, they have two thousand employees, there have been no announced layoffs, but that’s always a risk.”
TechData distributes technology products to major retailers. The company went public in 1986 with an initial public offering of around $2 a share.
Apollo’s private equity firm will take them off the NASDAQ and buy-out investors at $130 a share.
“People are saying, 'Gee, that’s more than I ever paid,'” Simon told FOX 13.
The deal isn’t final. Shareholders and regulators have to approve the sale in other countries where TechData does business.