Tech Data is the latest major IT distributor to receive interest from private equity, according to Reuters.
Private equity firm Apollo Global Management has initiated discussions with Tech Data to acquire the distributor for about US$5 billion, according to Reuters, which cited unnamed sources close to the deal.
The offer from Apollo is about US$130 per share, a significant premium over the company's current share price, Reuters reported. However, Tech Data has not necessarily engaged with discussions about the buyout offer.
Tech Data closed the trading day at US$111.33 per share. However, in after-hours trading, its share price rose to the US$126 to US$127 per share range.
Neither Apollo Global Management nor Tech Data responded to a request for more information by press time.
Tech Data is the second major distributor in the last two months to have received private equity interest.
Bloomberg and Reuters in late August reported that Hong Kong-based investment group RRJ Capital is looking to make a US$4-billion investment in Ingram Micro, which is currently owned by China-based HNA Group. Neither RRJ Capital nor Ingram Micro have commented publicly on that reported offer.
HNA, which late 2016 acquired Ingram Micro in a US$6-billion deal, has according to multiple reports been looking to sell many of its assets, including Ingram Micro, after having over-extended itself in a multi-year international acquisition spree.
Reuters reported that Apollo last year made an unsuccessful bid to purchase Ingram Micro for $7.5 billion.
O'Ryan Johnson contributed to this story.