The acquisition of Tech Data by a US investment firm Apollo is still in limbo as it awaits approval from the Australian Foreign Investment Review Board (AIFRB).
The distie revealed in its fiscal Q1 2020 results that it received all regulatory approvals necessary to complete the merger, apart from AIFRB, which has the matter “under consideration”.
“We expect to proceed with closing the transaction promptly after the final approval from the AFIRB is received,” Tech Data said in a statement.
Tech Data revealed in November 2019 that it had agreed to be acquired by alternative investment manager firm Apollo Global Management for US$5.4 billion, as it plans to delist from the NASDAQ and go private.
Tech Data global CEO Rich Hume also revealed that the distie had received the nod from shareholders to go through with the acquisition.
“The quarter also brought with it another milestone toward completing our acquisition by Apollo when we received shareholder approval of the transaction, which we look forward to closing upon completion of customary closing conditions,” he said.
The fiscal Q1 2020 results showed a three percent decline for the distie’s global business, citing challenges brought by the COVID-19 pandemic.
Asia Pacific saw a larger net sales decline of 16 percent from US$307 million in Q1 2019 to $259.3 million, with its share of worldwide net sales also declining from 4 percent to 3 percent.
“With the onset of the global COVID-19 crisis, the first quarter brought challenges to businesses across geographies and sectors, including the IT ecosystem,” Hume said.
“With this backdrop, Tech Data once again is proving its role as the vital link in the IT supply chain, delivering the critical technologies and solutions needed to address rapidly evolving business needs, including enabling remote work.