Apollo said Thursday it will pay $145 per share Tech Data, a premium of around 30% from the levels the stock was trading at prior to reports it was being targeted for a takeover in mid-October. Including debts, the Apollo bid values Tech Data at around $6 billion.
Shares were also rising amid a CNBC report that Warren Buffett's Berkshire Hathaway (BRK.A) - Get Report had attempted to trump Apollo's earlier offer -- which valued the group at $130 a share -- while adding that the billionaire investor isn't interested in bidding war for the Clearwater, Florida-based group.
Tech Data shares jumped 12.32%, or $15.89 a share, to $144.89 on the New York Stock Exchange. Year to date the company's stock has gained more than 76%.
Tech Data said it received a competing offer on November 22, but did not name Buffett's Berkshire Hathaway as the potential suitor. It considered the bit "superior" to Apollo's offer the following day, but accepted the private equity group's improved $145 dollar per share bid late Wednesday.
A "go-shop" clause in the takeover, however, gives Tech Data until December 9 to study and accepted any competing offers.
Tech Data earlier this week reported fiscal third-quarter adjusted earnings of $108.8 million, or $3.02 a share, vs. $116.3 million, or also $3.02 a share, in the year-earlier period. Analysts polled by FactSet had been expecting earnings of $2.99 a share. Revenue for the quarter came in at $9.12 billion vs. $9.34 billion a year ago.