Tech Data has closed its sale to private equity firm Apollo Global Management for $5.4 billion and announced plans to invest $750m in digital transformation initiatives over the next five years, which it claims will enable it to better serve its channel partners.
The investment will also power Tech Data’s strategy to accelerate innovation in ways that will deliver improved experiences and greater agility for businesses across the technology ecosystem, the company said.
“Tech Data’s acquisition by the Apollo funds is a significant milestone, and their support of our multi-year commitment of resources underscores our collective focus on long-term value creation,” said Rich Hume, chief executive officer, Tech Data.
“We continue to execute on our strategy to transform our company into one that defines a new standard of operational and cultural excellence in our industry. We believe Apollo will be an invaluable partner in helping us better enables our channel partners to bring to market the technology products and solutions the world needs to connect, grow and advance,” Hume said.
Tech Data’s digital transformation initiatives are focused on delivering state-of-the-art automation, platforms and analytics that will allow the Company to be more agile and responsive to the rapidly evolving needs of its channel partners. The program includes building a hyper-scalable digital business platform and a cloud-based digital marketplace that are designed to support Tech Data’s ambitious growth plans and serve emerging technology markets and consumption models.
“Apollo sees Tech Data as a strong platform for meaningful growth and further diversification, and we are committed to supporting investments that build on this vision,” said Robert Kalsow-Ramos, Private Equity Partner at Apollo. “This investment over the next five years helps ensure the company has the resources necessary to launch a bold digital enablement and innovation program that will transform the way it serves channel partners and employees.”