back to article Hunter becomes the hunted as private equity giant makes $5bn bid to buy Tech Data – report

Private equity monster Apollo Global Management has reportedly made an approach to buy Tech Data, one of the world's largest tech distributors, with a bid believed to be almost $5bn. According to Reuters, Apollo has offered $130 per share in cash, representing a nice little premium on Tech Data's stock price, which closed at $ …

  1. Anonymous Coward
    Anonymous Coward

    Not sure these figures add up

    $5bn investment with net profit margin of around about 1% of turnover. They have go to grow rapidly or improve their margins to see any return on investment. That is of course they don't load the $5bn debt onto the coampny books! We have seen how well that works in the long term

    1. Anonymous Coward
      Anonymous Coward

      Re: Not sure these figures add up

      They are trading on fine margins, but that isn't too unexpected. If you buy a server through them, you don't want them to charge enormous mark ups, otherwise you go somewhere else.

      The fact their value is a small fraction of their turnover ($5B vs $37B for last year) is a sign of that,

      If you view their profit in terms of % of value, then currently something like 2.5% return for last year, and maybe double that for this year.

      Whether you consider that as something worth investing in or not is a different question.

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