Table of Contents
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14AProxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
FiledbytheRegistrant
☒
FiledbyaPartyotherthantheRegistrant
☐
Checktheappropriatebox:
☒ PreliminaryProxyStatement
☐ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
☐ DefinitiveProxyStatement
☐ DefinitiveAdditionalMaterials
☐ SolicitingMaterialPursuantto§240.14a-12
TECH DATA CORPORATION(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
PaymentofFilingFee(Checktheappropriatebox):
☐ Nofeerequired.
☒ FeecomputedontablebelowperSecuritiesExchangeActRules14a-6(i)(1)and0-11.
(1)
Titleofeachclassofsecuritiestowhichtransactionapplies:
Commonstock,parvalue$0.0015pershare(“commonstock”)
(2)
Aggregatenumberofsecuritiestowhichtransactionapplies:
Themaximumnumberofsharesofcommonstocktowhichthistransactionappliesisestimatedtobe36,292,593,whichconsistsof(a)35,422,796sharesofcommonstockoutstanding;(b)582,669sharesofcommonstocksubjecttorestrictedstockunits;and(c)287,128sharesofcommonstocksubjecttoperformance-basedrestrictedstockunits.
(3)
PerunitpriceorotherunderlyingvalueoftransactioncomputedpursuanttoSecuritiesExchangeActRule0-11(setforththeamountonwhichthefilingfeeiscalculatedandstatehowitwasdetermined):
InaccordancewithSection14(g)oftheSecuritiesExchangeActof1934,asamended,thefilingfeewasdeterminedbymultiplying0.0001298by$5,262,425,985,which,solelyforthepurposeofcalculatingthefilingfee,representstheunderlyingvalueofthetransaction,calculatedbasedonthesumof(a)theproductof35,422,796sharesofcommonstockoutstandingandthepersharemergerconsiderationof$145.00;(b)theproductof582,669sharesofcommonstocksubjecttorestrictedstockunitsandthepersharemergerconsiderationof$145.00;and(c)theproductof287,128sharesofcommonstocksubjecttoperformance-basedrestrictedstockunitsandthepersharemergerconsiderationof$145.00.
(4)
Proposedmaximumaggregatevalueoftransaction:
$5,262,425,985
(5)
Totalfeepaid:
$683,062.89
☐ Feepaidpreviouslywithpreliminarymaterials.
☐
CheckboxifanypartofthefeeisoffsetasprovidedbySecuritiesExchangeActRule0-11(a)(2)andidentifythefilingforwhichtheoffsettingfeewaspaidpreviously.Identifythepreviousfilingbyregistrationstatementnumber,ortheFormorScheduleandthedateofitsfiling.
(1)
AmountPreviouslyPaid:
(2)
Form,ScheduleorRegistrationStatementNo.:
(3)
FilingParty:
(4)
DateFiled:
Table of Contents
PRELIMINARY PROXY STATEMENT, SUBJECT TO COMPLETION, DATED DECEMBER 11, 2019
TECH DATA CORPORATION
[●]
ToourShareholders:
YouarecordiallyinvitedtoattendaspecialmeetingoftheshareholdersofTechDataCorporation(“TechData”)tobeheldattheRaymundCenter,5350TechDataDrive,Clearwater,Florida33760on[●],2020at[●]EasternTime(the“SpecialMeeting”).
AttheSpecialMeeting,holdersofrecordofourcommonstock,parvalue$0.0015pershare(“TechDatacommonstock”),atthecloseofbusinesson[●](the“recorddate”),willbeaskedtoconsiderandvoteonaproposaltoapproveandadopttheAgreementandPlanofMerger,datedasofNovember12,2019,asamendedonNovember27,2019byAmendmentNo.1toAgreementandPlanofMerger(asfurtheramendedormodifiedfromtimetotime,the“MergerAgreement”),amongTechData,TigerMidco,LLC(“Parent”)andTigerMergerSubCo.(“MergerSub”).SubjecttothetermsandconditionsoftheMergerAgreementandtheapplicableprovisionsoftheFloridaBusinessCorporationAct,Chapter607,PartI,FloridaStatutes(the“FBCA”),MergerSubwillbemergedwithandintoTechDataandTechDatawillsurvivethemergerasadirectwhollyownedsubsidiaryofParent(the“Merger”).ParentandMergerSubareaffiliatesofcertainfundsmanagedbyaffiliatesofApolloGlobalManagement,Inc.
IftheMergeriscompleted,eachshareofTechDatacommonstockoutstandingimmediatelypriortotheeffectivetimeoftheMerger(the“EffectiveTime”)(otherthansharesofTechDatacommonstockheldbyParent,MergerSuborTechData(includingtreasuryshares)attheEffectiveTime)will,attheEffectiveTime,automaticallybeconvertedintotherighttoreceive$145.00incash,withoutinterest,subjecttoapplicablewithholdingtaxes,whichrepresentsapremiumof30.2%toTechData’sclosingsharepriceonOctober15,2019,whichwasthelasttradingdaypriortopublishedmarketspeculationregardingapotentialtransactioninvolvingTechData.TheproposaltoapproveandadopttheMergerAgreementrequirestheaffirmativevoteoftheholdersofatleastamajorityoftheoutstandingsharesofTechDatacommonstockentitledtovotethereoninaccordancewiththeapplicableprovisionsoftheFBCA.
TechDatacommonstockislistedontheNASDAQStockMarket(the“NASDAQ”)underthesymbol“TECD”.TheclosingsalespriceofTechDatacommonstockontheNASDAQon[●],themostrecentpracticabledatepriortothedateoftheaccompanyingproxystatement,was$[●]pershare.
TheTechDataboardofdirectors(the“Board”)hasreviewedandconsideredthetermsandconditionsoftheMergerAgreementandtheMergerandhasunanimously(i)adoptedtheMergerAgreementandapprovedtheexecution,deliveryandperformancebyTechDataoftheMergerAgreementandtheconsummationofthetransactionscontemplatedthereby,(ii)determinedthattheMergerAgreementandthetransactionscontemplatedtherebywerefairtoandinthebestinterestsofTechDataanditsshareholders,(iii)approvedanddeclaredadvisabletheMergerAgreementandtheconsummationoftheMergerand(iv)determinedtosubmittheMergerAgreementforapprovalandadoptionbyTechData’sshareholdersandrecommendedthattheTechData’sshareholdersapproveandadopttheMergerAgreement.TheBoardmadeitsdeterminationafterconsultationwithitsoutsidelegalcounselandfinancialadvisorandconsiderationofanumberoffactorsmorefullydescribedintheaccompanyingproxystatement.The Board unanimously recommends thatyou vote “FOR” the proposal to approve and adopt the Merger Agreement.
AttheSpecialMeeting,shareholderswillalsobeaskedtovoteon(i)aproposaltoapprove,onanon-binding,advisorybasis,certaincompensationthatwillormaybepaidtoTechData’snamedexecutive
Table of Contents
officersbyTechDatabasedonorotherwiserelatingtotheMerger,asrequiredbytherulesadoptedbytheU.S.SecuritiesandExchangeCommission(the“SEC”)and(ii)aproposaltoapproveanadjournmentoftheSpecialMeeting,fromtimetotime,ifnecessaryorappropriate,includingtosolicitadditionalproxiesifthereareinsufficientvotesatthetimeoftheSpecialMeetingtoapprovetheproposaltoapproveandadopttheMergerAgreementorintheabsenceofaquorum.The Board unanimously recommends that you vote “FOR” each of these proposals.
TheBoardissolicitingyourproxytoassurethataquorumispresentandthatyoursharesarerepresentedandvotedattheSpecialMeetingandanypostponementoradjournmentthereof.
Ifyoursharesareheldin“streetname,”youshouldinstructyourbank,brokeragefirmorothernomineehowtovoteyoursharesoneachproposalinaccordancewithyourvotinginstructionform.
TheMergercannotbecompletedunlessTechDatashareholdersapproveandadopttheMergerAgreement.Your vote is very important, regardlessof the number of shares you own. Whether or not you expect to attend the Special Meeting in person, please submit a proxy to vote your shares aspromptly as possible so that your shares may be represented and voted at the Special Meeting. If you attend the Special Meeting and vote inperson, your vote by ballot will revoke any proxy previously submitted. If you fail to return your proxy card and you are a holder of record on therecord date, unless you attend the Special Meeting in person, the effect will be that your shares of Tech Data common stock will not be consideredpresent at the Special Meeting for the purpose of determining whether a quorum is present at the Special Meeting and will have the same effect asa vote “AGAINST” the approval and adoption of the Merger Agreement. Similarly, if you hold your shares in “street name” and fail to instructyour bank, brokerage firm or other nominee how to vote your shares, your shares will not be counted for purposes of determining whether aquorum is present and will have the same effect as a vote “AGAINST” the adoption of the Merger Agreement.
TheaccompanyingproxystatementcontainsdetailedinformationaboutTechData,theSpecialMeeting,theMergerAgreement,theMerger,theMerger-relatednamedexecutiveofficercompensationproposalandtheadjournment-relatedproposal.AcopyoftheMergerAgreementisattachedasAnnex Atotheaccompanyingproxystatementandincorporatedthereinbyreference.Weurgeyouto,andyoushould,readtheentireproxystatementcarefully,includingtheMergerAgreementandtheotherannexesandthedocumentsreferredtoorincorporatedbyreferenceintheaccompanyingproxystatement.YoumayobtainadditionalinformationaboutTechDatafromdocumentswehavefiledwiththeSEC.
IfyouhaveanyquestionsorneedassistancevotingyoursharesofTechDatacommonstock,pleasecontactMacKenziePartners,Inc.,ourproxysolicitor,[email protected].
ThankyouforyourconfidenceinTechData.
Sincerely,
RichardT.HumeChiefExecutiveOfficer
Neither the SEC nor any state securities regulatory agency has approved or disapproved of the Merger, passed upon the merits or fairness ofthe Merger Agreement or the Merger or determined if the accompanying proxy statement is accurate or complete. Any representation to thecontrary is a criminal offense.
Theaccompanyingproxystatementisdated[●]and,togetherwiththeenclosedformofproxycard,isfirstbeingmailedtoTechDatashareholdersonorabout[●].
Table of Contents
TECH DATA CORPORATION5350 TECH DATA DRIVE
CLEARWATER, FLORIDA 33760
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
DATE & TIME
[●],2020at[●],EasternTime
PLACE
RaymundCenter,5350TechDataDrive,Clearwater,Florida33760
ITEMS OF BUSINESS
• ToconsiderandvoteonaproposaltoapproveandadopttheAgreementandPlanofMerger,datedasofNovember12,2019,asamendedonNovember27,2019byAmendmentNo.1toAgreementandPlanofMerger(asfurtheramendedormodifiedfromtimetotime,the“MergerAgreement”),amongTechDataCorporation(“TechData”),TigerMidco,LLCandTigerMergerSubCo.(the“MergerProposal”)andthetransactionscontemplatedthereby;acopyoftheMergerAgreementisattachedtotheaccompanyingproxystatementasAnnex Aandisincorporatedthereinbyreference;
• Toconsiderandvoteonaproposaltoapprove,onanon-binding,advisorybasis,certaincompensationthatwillormaybepaidbyTechDatatoitsnamedexecutiveofficersthatisbasedonorotherwiserelatestotheMerger(the“namedexecutiveofficerMerger-relatedcompensationproposal”);
• ToconsiderandvoteonaproposaltoapproveanadjournmentofthespecialmeetingofTechDatashareholders(the“SpecialMeeting”)fromtimetotime,ifnecessaryorappropriate,includingtosolicitadditionalproxiesifthereareinsufficientvotesatthetimeoftheSpecialMeetingtoapprovetheMergerProposalorintheabsenceofaquorum(the“AdjournmentProposal”);and
• TotransactsuchotherbusinessasmayproperlybebroughtbeforetheSpecialMeeting,oranyadjournmentsorpostponementsoftheSpecialMeeting,byoratthedirectionoftheTechDataboardofdirectors(the“Board”).
RECORD DATE
OnlyholdersofrecordofTechDatacommonstock,parvalue$0.0015pershare(“TechDatacommonstock”),atthecloseofbusinesson[●](the“recorddate”)areentitledtonoticeof,andtovoteat,theSpecialMeetingandatanyadjournmentorpostponementoftheSpecialMeeting.
VOTING BY PROXY
Your vote is very important, regardless of the number of shares you own.TheBoardissolicitingyourproxytoassurethataquorumispresentandthatyoursharesarerepresentedandvotedattheSpecialMeetinginaccordancewiththeapplicableprovisionsoftheFloridaBusinessCorporationAct(the“FBCA”).ForinformationonsubmittingyourproxyovertheInternet,bytelephoneorbymailingbackthetraditionalproxycard(noextrapostageisneededfortheprovidedenvelopeifmailedintheU.S.),pleaseseetheattachedproxystatementandenclosedproxycard.IfyoulaterdecidetovoteinpersonattheSpecialMeeting,informationonrevokingyourproxypriortotheSpecialMeetingisalsoprovided.
Table of Contents
RECOMMENDATIONS
TheBoardrecommendsthatyouvote:
• “FOR”theMergerProposal;
• “FOR” thenamedexecutiveofficerMerger-relatedcompensationproposal;and
• “FOR” theAdjournmentProposal.
APPRAISAL
UndertheFBCA,solongasTechDatacommonstockcontinuestobelistedontheNASDAQ,,appraisalrightswillnotbeavailabletoTechData’sshareholdersinconnectionwiththeMerger.
YOUR VOTE IS VERY IMPORTANT. WHETHER OR NOT YOU PLAN TO ATTEND THE SPECIAL MEETING IN PERSON,PLEASE SUBMIT A PROXY TO VOTE YOUR SHARES OVER THE INTERNET OR BY TELEPHONE PURSUANT TO THEINSTRUCTIONS CONTAINED IN THESE MATERIALS OR COMPLETE, DATE, SIGN AND RETURN A PROXY CARD AS PROMPTLYAS POSSIBLE.IFYOURECEIVEMORETHANONEPROXYBECAUSEYOUOWNSHARESREGISTEREDINDIFFERENTNAMESORADDRESSES,EACHPROXYSHOULDBESUBMITTED.IFYOUDONOTSUBMITYOURPROXYORVOTEINPERSONATTHESPECIALMEETINGONTHEMERGERPROPOSAL,ITWILLHAVETHESAMEEFFECTASAVOTE“AGAINST”THEMERGERPROPOSAL.IFYOUHOLDYOURSHARESIN“STREETNAME”ANDDONOTINSTRUCTYOURBANK,BROKERAGEFIRMOROTHERNOMINEEHOWTOVOTEYOURSHARES,ITWILLHAVETHESAMEEFFECTASAVOTE“AGAINST”THEMERGERPROPOSAL.
YourproxymayberevokedatanytimebeforethevoteattheSpecialMeetingbyfollowingtheproceduresoutlinedintheaccompanyingproxystatement.
Ifyoursharesareheldbyabank,brokeragefirmorothernomineeandyouwishtovoteinpersonattheSpecialMeeting,youmustbringtotheSpecialMeetingaproxyfromthebank,brokeragefirmorothernomineethatholdsyoursharesauthorizingyoutovoteinpersonattheSpecialMeeting.PleasealsobringtotheSpecialMeetingyouraccountstatementevidencingyourbeneficialownershipofTechDatacommonstockasoftherecorddate.Allshareholdersshouldalsobringphotoidentification.
TheproxystatementofwhichthisnoticeformsapartprovidesadetaileddescriptionoftheMerger,theMergerAgreement,theMergerProposal,thenamedexecutiveofficerMerger-relatedcompensationproposalandtheAdjournmentProposalandprovidesspecificinformationconcerningtheSpecialMeeting.Weurgeyoutoreadtheproxystatement,includinganydocumentsincorporatedthereinbyreference,anditsannexescarefullyandintheirentirety.IfyouhaveanyquestionsconcerningtheMergerortheproxystatement,wouldlikeadditionalcopiesoftheproxystatementorneedhelpvotingyoursharesofTechDatacommonstock,pleasecontactTechData’sproxysolicitor,MacKenziePartners,Inc.,[email protected].
ByOrderoftheBoardofDirectors,
WayneO.HanewiczCorporateVicePresident,Secretary
Clearwater,FL[●]
Table of Contents
TABLE OF CONTENTS
SUMMARYTERMSHEET
1
TheParties
1
TheSpecialMeeting
2
TheMerger
6
QUESTIONSANDANSWERSABOUTTHESPECIALMEETINGANDTHEMERGER
14
CAUTIONARYSTATEMENTREGARDINGFORWARD-LOOKINGSTATEMENTS
24
THEPARTIESTOTHEMERGER
26
TechDataCorporation
26
TigerMidco,LLC
26
TigerMergerSubCo.
26
THESPECIALMEETING
28
Date,TimeandPlace
28
PurposeoftheSpecialMeeting
28
RecommendationoftheBoard
28
RecordDate;ShareholdersEntitledtoVote
29
Quorum
29
RequiredVote
29
AbstentionsandBrokerNon-Votes
30
FailuretoVote
30
VotingbyTechData’sDirectorsandExecutiveOfficers
31
VotingattheSpecialMeeting
31
RevocationofProxies
32
SolicitationofProxies
32
Adjournment
32
OtherInformation
33
Questions
33
THEMERGERPROPOSAL(PROPOSAL1)
34
StructureoftheMerger
34
WhatShareholdersWillReceiveintheMerger
34
TreatmentofTechDataEquityAwards
34
EffectsonTechDataiftheMergerIsNotCompleted
34
BackgroundoftheMerger
35
RecommendationoftheBoardandReasonsfortheMerger
44
OpinionofTechData’sFinancialAdvisor
50
CertainUnauditedProspectiveFinancialInformation
56
InterestsofTechData’sExecutiveOfficersandDirectorsintheMerger
58
FinancingoftheMerger
65
i
Table of Contents
LimitedGuarantee
65
AntitrustReviewRequiredfortheMergerandOtherRegulatoryFilings
66
MaterialU.S.FederalIncomeTaxConsequencesoftheMerger
67
AppraisalRights
67
DelistingandDeregistrationofTechDataCommonStock
67
THEMERGERAGREEMENT
68
ExplanatoryNoteRegardingtheMergerAgreement
68
StructureoftheMerger;CertificateofIncorporation;Bylaws;DirectorsandOfficers
68
ClosingandEffectivenessoftheMerger
68
MergerConsideration
69
ExchangeandPaymentProcedures
69
NoTransfersFollowingtheEffectiveTime
70
TerminationofPaymentFund
70
Lost,StolenorDestroyedCertificates
70
WithholdingTaxes
70
TreatmentofTechDataEquityAwards
70
RepresentationsandWarranties
71
CovenantsRelatingtotheConductofBusinessPendingtheMerger
74
Access
76
CompanyTakeoverProposal;Non-Solicitation
77
CompanyShareholdersMeeting
80
FinancingandFinancingCooperation
81
EmployeeMatters
88
EffortstoCompletetheMerger
89
IndemnificationandInsurance
90
CoordinationonTransactionLitigation
91
ConductofParentandMergerSubPendingtheMerger
91
DelistingandDeregistrationofTechDataCommonStock
91
OtherCovenantsandAgreements
91
ConditionstotheClosingoftheMerger
92
Termination
93
TerminationFeesandExpenses
94
LimitationonRemedies
96
AmendmentandWaiveroftheMergerAgreement
96
Expenses
96
SpecificPerformance
97
GoverningLaw
98
Jurisdiction
98
RequiredVote;RecommendationoftheBoard
98
ADVISORYVOTEONNAMEDEXECUTIVEOFFICERMERGER-RELATEDCOMPENSATIONPROPOSAL(PROPOSAL2)
99
ii
Table of Contents
THEADJOURNMENTPROPOSAL(PROPOSAL3)
100
MARKETPRICESOFTECHDATACOMMONSTOCK
101
MarketInformation
101
Holders
101
Dividends
101
SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENT
102
MATERIALU.S.FEDERALINCOMETAXCONSEQUENCESOFTHEMERGER
104
FUTURETECHDATASHAREHOLDERPROPOSALS
106
MULTIPLESHAREHOLDERSSHARINGONEADDRESS
107
WHEREYOUCANFINDMOREINFORMATION
108
AnnexA
A-1
AnnexB
B-1
iii
Table of Contents
SUMMARY TERM SHEET
This summary highlights information contained elsewhere in this proxy statement and may not contain all the information that is important to youwith respect to the Merger Agreement, the Merger and the other matters being considered at the Special Meeting of Tech Data shareholders. We urge youto read carefully the remainder of this proxy statement, including the attached annexes, and the other documents to which we have referred you. Foradditional information on Tech Data, see the section entitled “Where You Can Find More Information” beginning on page [●]. We have included pagereferences in this summary to direct you to a more complete description of the topics presented below.
Allreferencesto“TechData,”the“Company,”“we,”“us,”or“our”inthisproxystatementrefertoTechDataCorporation,aFloridacorporation.TechData,followingthecompletionoftheMerger,issometimesreferredtointhisproxystatementasthe“survivingcorporation.”Inaddition,unlessotherwiseindicated,orunlessthecontextotherwiserequires,areferenceinthisproxystatementto:
• “Amendment”meanstheAmendmentNo.1toAgreementandPlanofMerger,datedasofNovember27,2019,byandamongTechData,ParentandMergerSub;
• “Apollo”meansApolloGlobalManagement,Inc.anditssubsidiaries;
• “ApolloFunds”meanscertainfundsaffiliatedwithParentandMergerSubandmanagedbyaffiliatesofApollo;
• “Board”meanstheboardofdirectorsofTechData;
• “FBCA”meanstheFloridaBusinessCorporationAct,Chapter607,FloridaStatutes(asthesameisineffectandapplicableontherelevantdateordates);
• “Merger”meansthemergerofMergerSubwithandintoTechDataonthetermsandsubjecttotheconditionssetforthintheMergerAgreement,withTechDatasurvivingasadirectwhollyownedsubsidiaryofParent;
• “MergerAgreement”meanstheAgreementandPlanofMerger,datedasofNovember12,2019,asamendedonNovember27,2019bythe
Amendment,asfurtheramendedormodifiedfromtimetotime,acopyofwhichisattachedasAnnex Atothisproxystatementandisincorporatedbyreferenceherein;
• “MergerSub”meansTigerMergerSubCo.,aDelawarecorporationandawhollyownedsubsidiaryofParent,formedsolelyforthepurposeofenteringintotheMergerAgreementandengaginginthetransactionscontemplatedbytheMergerAgreement;
• “OriginalAgreement”meanstheAgreementandPlanofMerger,datedasofNovember12,2019,byandamongTechData,ParentandMergerSub;
• “Parent”meansTigerMidco,LLC,aDelawarelimitedliabilitycompanyandthesolestockholderofMergerSub;and
• “TechDatacommonstock”meansthecommonstock,parvalue$0.0015pershare,ofTechData.
The Parties
Tech Data Corporation (see page [●])
TechDataconnectstheworldwiththepoweroftechnology.Ourend-to-endportfolioofproducts,servicesandsolutions,highlyspecializedskills,andexpertiseinnext-generationtechnologiesenablechannelpartnerstobringtomarkettheproductsandsolutionstheworldneedstoconnect,growandadvance.TechDataisrankedNo.88ontheFortune500®andhasbeennamedoneofFortune’sWorld’sMostAdmiredCompaniesfor10straightyears.
1
Table of Contents
TechDataisacorporationorganizedunderthelawsoftheStateofFloridaandheadquarteredinClearwater,Florida.TechData’sprincipalofficesarelocatedat5350TechDataDrive,Clearwater,FL33760andourtelephonenumberis(727)539-7429.TechDatacommonstockistradedontheNASDAQStockMarket(the“NASDAQ”)underthetickersymbol“TECD”.Ourcorporatewebaddressiswww.techdata.com.Theinformationprovidedon,orthatmaybeaccessedthrough,theTechDatawebsiteisnotpartofthisproxystatementandisnotincorporatedinthisproxystatementbyreferenceherebyorbyanyotherreferencetoTechData’swebsiteprovidedinthisproxystatement.
AdditionalinformationaboutTechDataiscontainedinourpublicfilingswiththeU.S.SecuritiesandExchangeCommission(the“SEC”).Seethesectionentitled“WhereYouCanFindMoreInformation”beginningonpage[●].
Tiger Midco, LLC (see page [●])
ParentisaDelawarelimitedliabilitycompanyandthesolestockholderofMergerSub,thatwasformedsolelyforthepurposeofenteringintotheMergerAgreementandrelatedagreementsandcompletingthetransactionscontemplatedthereby.ParenthasnotconductedanybusinessoperationsotherthaninconnectionwiththetransactionscontemplatedbytheMergerAgreementandrelatedagreements.Uponcompletionofthetransactionscontemplatedthereby,TechDatawillbeadirectwhollyownedsubsidiaryofParent.
ParentisanaffiliateoftheApolloFunds.TheApolloFundsaremanagedbyaffiliatesofApollo.ApolloisaleadingglobalalternativeinvestmentmanagerwithofficesinNewYork,LosAngeles,SanDiego,Houston,Bethesda,London,Frankfurt,Madrid,Luxembourg,Mumbai,Delhi,Singapore,HongKong,ShanghaiandTokyo.Apollohadassetsundermanagementofapproximately$323billionasofSeptember30,2019incredit,privateequityandrealassetsfundsinvestedacrossacoregroupofnineindustrieswhereApollohasconsiderableknowledgeandresources.Apollo’sClassAsharesarelistedontheNewYorkStockExchangeunderthesymbol“APO.”
Tiger Merger Sub Co. (see page [●])
MergerSubisaDelawarecorporationandawhollyownedsubsidiaryofParentthatwasformedsolelyforthepurposeofenteringintotheMergerAgreementandcompletingthetransactionscontemplatedthereby.MergerSubhasnotconductedanybusinessoperationsotherthaninconnectionwiththetransactionscontemplatedbytheMergerAgreementandrelatedagreements.UponcompletionoftheMerger,MergerSubwillmergewithandintoTechData,andMergerSubwillceasetoexist.
The Special Meeting
Date, Time and Place (see page [●])
ThespecialmeetingofTechDatashareholders(the“SpecialMeeting”)isscheduledtobeheldattheRaymundCenter,5350TechDataDrive,Clearwater,Florida33760,on[●],2020at[●],EasternTime.
Purpose of the Meeting (see page [●])
TheSpecialMeetingisbeingheldinordertoconsiderandvoteonthefollowingproposals:
• ToapproveandadopttheMergerAgreement,includingtheplanofMergercontemplatedbytheMergerAgreementandthetransactionscontemplatedthereby,allinaccordancewiththeFBCA(the“MergerProposal”);
• Toapprove,onanon-binding,advisorybasis,certaincompensationthatwillormaybepaidbyTechDatatoitsnamedexecutiveofficersthatisbasedonorotherwiserelatestotheMerger(the“namedexecutiveofficerMerger-relatedcompensationproposal”);and
2
Table of Contents
• ToapprovetheadjournmentoftheSpecialMeeting,fromtimetotime,ifnecessaryorappropriate,includingtosolicitadditionalproxiesif
thereareinsufficientvotesatthetimeoftheSpecialMeetingtoapprovetheMergerProposalorintheabsenceofaquorum(the“AdjournmentProposal”).
ShareholdersmayalsobeaskedtotransactsuchotherbusinessasmayproperlybebroughtbeforetheSpecialMeeting,oranyadjournmentsorpostponementsoftheSpecialMeeting,byoratthedirectionoftheBoard.
TheBoardhasreviewedandconsideredthetermsandconditionsoftheMergerAgreementandtheMerger.Afterconsultingwithitsoutsidelegalcounselandfinancialadvisorandafterconsiderationofvariousfactorsmorefullydescribedinthisproxystatement,theBoardunanimously(i)adoptedtheMergerAgreementandapprovedtheexecution,deliveryandperformancebyTechDataoftheMergerAgreementandtheconsummationofthetransactionscontemplatedthereby,(ii)determinedthattheMergerAgreementandthetransactionscontemplatedtherebywerefairtoandinthebestinterestsofTechDataanditsshareholders,(iii)approvedanddeclaredadvisabletheMergerAgreementandtheconsummationoftheMergerand(iv)determinedtosubmittheMergerAgreementforapprovalandadoptionbyTechData’sshareholdersandrecommendedthattheTechData’sshareholdersapproveandadopttheMergerAgreement.The Board unanimously recommends that Tech Data shareholders vote “FOR” the Merger Proposal, “FOR” the namedexecutive officer Merger-related compensation proposal and “FOR” the Adjournment Proposal.
TheholdersofatleastamajorityoftheoutstandingsharesofTechDatacommonstockentitledtovoteontheMergerProposalmustvotetoapprovetheMergerProposalasaconditionfortheMergertooccur.IfTechDatashareholdersfailtoapprovetheMergerProposalbytherequisitevote,theMergerwillnotoccur.
Record Date; Shareholders Entitled to Vote (see page [●])
OnlyholdersofrecordofTechDatacommonstockatthecloseofbusinesson[●],therecorddatefortheSpecialMeeting(the“recorddate”),willbeentitledtonoticeof,andtovoteat,theSpecialMeetingoranyadjournmentsorpostponementsoftheSpecialMeeting.Ontherecorddate,[●]sharesofTechDatacommonstockwereissuedandoutstanding,heldbyapproximately[●]holdersofrecord.
HoldersofrecordofTechDatacommonstockareentitledtoonevoteoneachmattersubmittedtoavoteattheSpecialMeetingforeachshareofTechDatacommonstocktheyownofrecordontherecorddate.AcompletelistofshareholdersentitledtovoteattheSpecialMeetingwillbeavailableforinspectionduringregularbusinesshoursforaperiodofnolessthan10daysbeforetheSpecialMeetingandattheSpecialMeeting.
Quorum (see page [●])
UnderourbylawsandtheFBCA,theholders(asoftherecorddate)ofamajorityoftheoutstandingsharesofTechDatacommonstockentitledtovoteonamatterattheSpecialMeeting,whetherrepresentedinpersonorbyproxy,willconstituteaquorumonthatmatterattheSpecialMeeting.TheremustbeaquorumforbusinesstobeconductedattheSpecialMeeting.IfthereislessthanaquorumpresentattheSpecialMeeting,theshareholderspresentmayadjournthemeetingfromtimetotimewithoutfurthernoticeotherthanannouncementatthemeetinginaccordancewiththeFBCA,untilaquorumshallbepresentorrepresented.
Ifyousubmit(anddonotthereafterrevoke)aproperlyexecutedproxycard,evenifyouabstainfromvoting,yoursharesofTechDatacommonstockwillbecountedforpurposesofdeterminingwhetheraquorumispresentattheSpecialMeeting.IntheeventthataquorumisnotpresentattheSpecialMeetingoradditionalvotesmustbesolicitedtoapprovetheMergerProposal,themeetingmaybeadjournedorpostponedtosolicitadditionalproxies.
Asoftherecorddate,therewere[●]sharesofTechDatacommonstockissuedandoutstanding.
3
Table of Contents
Required Vote (see page [●])
TheapprovaloftheMergerProposalrequirestheaffirmativevoteofatleastamajorityofallvotesentitledtobecastbytheholdersofTechDatacommonstockoutstandingontherecorddate.
TheapprovalofthenamedexecutiveofficerMerger-relatedcompensationproposal(onanon-binding,advisorybasis)requirestheaffirmativevoteoftheholdersofatleastamajorityofthevotescastattheSpecialMeeting.
TheapprovaloftheAdjournmentProposalrequirestheaffirmativevoteoftheholdersofatleastamajorityofthevotescastattheSpecialMeeting.
Asoftherecorddate,therewere[●]sharesofTechDatacommonstockissuedandoutstanding.
Voting at the Special Meeting (see page [●])
IfyoursharesofTechDatacommonstockareregistereddirectlyinyournamewithourtransferagent,youareconsidereda“shareholderofrecord.”ShareholdersofrecordcanvotetheirsharesofTechDatacommonstockinthefollowingfourways:(i)byindicatingyourvotebycompleting,signinganddatingtheproxycardwhereindicatedandbymailingorotherwisereturningthecardintheenvelopethatwillbeprovidedtoyou,(ii)bysubmittingyourproxybytelephonebydialingthetoll-freenumber[●],(iii)bysubmittingyourproxyovertheInternetbygoingto[●]or(iv)byattendingtheSpecialMeetingandvotingyoursharesinperson.EvenifyouplantoattendtheSpecialMeeting,TechDataencouragesyoutosubmitaproxyinadvancebyInternet,telephoneormailsothatyourvotewillbecountedevenifyoulaterdecidenottoattendtheSpecialMeeting.VotescastinpersonorbyproxyattheSpecialMeetingwillbetabulatedbytheinspectorsofelectionappointedfortheSpecialMeeting,whoalsowilldeterminewhetheraquorumispresent.
Ifyoursharesareheldbyyourbank,brokeragefirmorothernominee,youareconsideredthebeneficialownerofsharesheldin“streetname”andyouwillreceiveaformfromyourbank,brokeragefirmorothernomineeseekinginstructionfromyouastohowyoursharesshouldbevoted.Youshouldinstructyourbank,brokeragefirmorothernomineehowtovoteyoursharesofTechDatacommonstockoneachproposalinaccordancewithyourvotinginstructionform.Ifyoubeneficiallyownyoursharesandreceiveavotinginstructionform,youcanvotebyfollowingtheinstructionsonyourvotinginstructionform.Pleaserefertoinformationfromyourbank,brokeragefirmorothernomineeonhowtosubmitvotinginstructions.Shareholderswhoowntheirsharesin“streetname”arenotabletovoteattheSpecialMeetingunlesstheyhavealegalproxy,executedintheirfavor,fromtheshareholderofrecord(bank,brokeragefirmorothernominee)givingthemtherighttovotethesharesattheSpecialMeeting.
YoumayrevokeyourproxyatanytimepriortothevoteattheSpecialMeetingby(i)sendingawrittenstatementtothateffecttoTechData,at5350TechDataDrive,Clearwater,FL33760,Attention:WayneO.Hanewicz,Secretary,bearingadatelaterthanthedateoftheproxy,thatisreceivedpriortotheSpecialMeeting,(ii)votingagainbyInternetortelephone,solongasyoudosobeforethedeadlineof[●]on[●],2020,(iii)submittingaproperlysignedproxycardwithalaterdateandmailingittotheaddresssetforththereinsothatitisreceivedpriortotheSpecialMeeting,or(iv)attendingtheSpecialMeetingandvotinginperson.AttendanceattheSpecialMeetingwillnot,inandofitself,resultintherevocationofaproxyorcauseyoursharesofTechDatacommonstocktobevoted.Ifyouholdsharesin“streetname,”youmaysubmitnewvotinginstructionsbycontactingyourbank,brokeragefirmorothernominee.YoumayalsochangeyourvoteorrevokeyourproxyinpersonattheSpecialMeetingifyouobtainasignedproxyfromtheshareholderofrecord(bank,brokeragefirmorothernominee)givingyoutherighttovotetheshares.
TechDatarecommendsthatyousubmitaproxytovoteyoursharesassoonaspossible,evenifyouareplanningtoattendtheSpecialMeetingtoensurethatyoursharesarerepresentedandvotedatthemeetingandsothatthevotecountwillnotbedelayed.
4
Table of Contents
Abstentions and Broker Non-Votes (see page [●])
Anabstentionoccurswhenashareholderattendsameeting,eitherinpersonorbyproxy,butabstainsfromvoting.AttheSpecialMeeting,abstentionswillbecountedaspresentforpurposesofdeterminingwhetheraquorumexists.Abstainingfromvotingwillhavethesameeffectasavote“AGAINST”theMergerProposal.AbstainingfromvotingwillhavenoeffectontheoutcomeofthenamedexecutiveofficerMerger-relatedcompensationproposalortheAdjournmentProposal.Ifnoinstructionastohowtovoteisgiven(includingnoinstructiontoabstainfromvoting)inanexecuted,dulyreturnedandnotrevokedproxythatisnotheldin“streetname”,theproxywillbevoted“FOR”(i)approvaloftheMergerProposal,(ii)approvalofthenamedexecutiveofficerMerger-relatedcompensationproposaland(iii)approvaloftheAdjournmentProposal.
Brokernon-votesaresharesheldin“streetname”bybanks,brokeragefirmsorothernomineesthatarepresentorrepresentedbyproxyattheSpecialMeeting,butwithrespecttowhichthebank,brokeragefirmorothernomineeisnotinstructedbythebeneficialownerofsuchshareshowtovoteonaparticularproposalandsuchbank,brokeragefirmorothernomineedoesnothavediscretionaryvotingpoweronsuchproposal.Because,underNASDAQrules,banks,brokeragefirmsorothernomineesholdingsharesin“streetname”donothavediscretionaryvotingauthoritywithrespecttoanyofthethreeproposalsdescribedinthisproxystatement,ifabeneficialownerofsharesofTechDatacommonstockheldin“streetname”doesnotgivevotinginstructionstothebank,brokeragefirmorothernominee,thenthoseshareswillnotbecountedaspresentinpersonorbyproxyattheSpecialMeeting.AsthevotetoapprovetheMergerProposalisbasedonthetotalnumberofsharesofTechDatacommonstockoutstandingandentitledtovoteontheMergerProposalontherecorddate,notjustthesharesthatarecountedaspresentinpersonorbyproxyattheSpecialMeeting,ifyoufailtoissuevotinginstructionstoyourbank,brokeragefirmorothernominee,thesharesofTechDatacommonstockthatyouownwillnotbecountedforpurposesofdeterminingwhetheraquorumispresentattheSpecialMeetinganditwillhavethesameeffectasavote“AGAINST”theMergerProposal.
Solicitation of Proxies (see page [●])
TheBoardissolicitingyourproxy,andTechDatawillbearthecostofsolicitingproxies.MacKenziePartners,Inc.(“MacKenzie”)hasbeenretainedtoassistwiththesolicitationofproxiesandproviderelatedproxyadvisoryservices.MacKenziewillbepaidafinalfeenottoexceed$20,000plusreasonableanddocumentedout-of-pocketexpensesfortheseservicesinconnectionwiththeSpecialMeeting.TechDatawillalsoindemnifyMacKenzieforcertainlossesarisingoutoftheseservices.Solicitationinitiallywillbemadebymail.TechDataandMacKenziealsowillrequestthatbanks,brokeragefirms,andothercustodians,nomineesandfiduciariessendproxymaterialstothebeneficialownersofsharesofTechDatacommonstockandwill,ifrequested,reimbursethemfortheirreasonableout-of-pocketexpensesindoingso.
Adjournment (see page [●])
InadditiontotheMergerProposalandthenamedexecutiveofficerMerger-relatedcompensationproposal,TechDatashareholdersarealsobeingaskedtoapprovetheAdjournmentProposal,whichwillenabletheadjournmentoftheSpecialMeeting,ifnecessaryorappropriate,includingtosolicitadditionalproxiesifthereareinsufficientvotesatthetimeoftheSpecialMeetingtoapprovetheMergerProposalorintheabsenceofaquorum.
Althoughitisnotcurrentlyexpected,ifaquorumisnotpresentattheSpecialMeeting,theshareholdersholdingamajorityofthesharesofTechDatacommonstockpresentinpersonorbyproxyattheSpecialMeetingandentitledtovotethereatmayadjourntheSpecialMeetingfromtimetotimeuntilaquorumshallbepresent.Ifanewrecorddateisormustbefixedunderlaw,anoticeoftheadjournedmeetingmustbegiventoeachshareholderofrecordasofthenewrecorddateandwhoisotherwiseentitledtonoticeofandvoteatsuchmeeting.Inaddition,theSpecialMeetingcouldbepostponedbeforeitcommences,subjecttothetermsoftheMergerAgreement.IftheSpecialMeetingisadjournedorpostponed,shareholderswhohavealreadysubmitted
5
Table of Contents
theirproxieswillbeabletorevokethematanytimepriortothefinalvoteontheproposals.IfyoureturnaproxyanddonotindicatehowyouwishtovoteontheAdjournmentProposal,yourshareswillbevotedinfavoroftheAdjournmentProposal.
The Merger
TherightsandobligationsofthepartiestotheMergerAgreementaregovernedbythespecifictermsandconditionsoftheMergerAgreementandnotbyanysummaryorotherinformationinthisproxystatement.Therefore,theinformationinthisproxystatementregardingtheMergerAgreementandtheMergerisqualifiedinitsentiretybyreferencetotheMergerAgreement,acopyofwhichisattachedasAnnex Atothisproxystatementandisincorporatedhereinbyreference.WeencourageyoutoreadtheMergerAgreementcarefullyandinitsentiretybecauseitistheprincipallegalagreementthatgovernsthetermsandconditionsoftheMerger.
Structure of the Merger (see page [●])
IftheMergeriscompleted,thenattheeffectivetimeoftheMerger(the“EffectiveTime”),MergerSubwillmergewithandintoTechData,theseparatecorporateexistenceofMergerSubwillceaseandTechDatawillsurvivetheMergerasadirectwhollyownedsubsidiaryofParent.
Merger Consideration (see page [●])
UponthetermsandsubjecttotheconditionsoftheMergerAgreement,attheEffectiveTime,eachshareofTechDatacommonstockoutstandingimmediatelypriortotheEffectiveTime(otherthansharesheldbyTechDataastreasurystockorheldbyParentorMergerSub,ineachcase,immediatelypriortotheEffectiveTime(the“canceledshares”))willautomaticallybeconvertedintotherighttoreceive$145.00incash,withoutinterest,subjecttoanyapplicablewithholdingtaxes(the“MergerConsideration”).
Treatment of Tech Data Equity Awards (see page [●])
PursuanttotheMergerAgreement,asoftheEffectiveTime,eachCompanyRSUAward(asdefinedintheMergerAgreement)willvestatclosingandbecanceledandconvertedintotherighttoreceiveanamountincashequaltotheMergerConsiderationforeachshareofTechDatacommonstocksubjecttosuchCompanyRSUAwardimmediatelypriortotheEffectiveTime(lessapplicablewithholdingtaxes).EachCompanyPRSUAward(asdefinedintheMergerAgreement)will,atclosing,becanceledandconvertedintotherighttoreceiveanamountincashequaltotheMergerConsiderationforeachshareofTechDatacommonstocksubjecttosuchCompanyPRSUAwardimmediatelypriortotheEffectiveTime(lessapplicablewithholdingtaxes),withthenumberofsharesofTechDatacommonstocksubjecttoeachsuchCompanyPRSUAwarddeterminedasfollows:(A)withrespecttoeachCompanyPRSUAwardgrantedfortheperformanceperiodcommencingwiththeCompany’sfiscalyear2020,thenumberofsharesofTechDatacommonstocksubjecttosuchCompanyPRSUAwardimmediatelypriortotheEffectiveTimeshallequal110%oftheTotalSharesGrantedassuchtermisusedintheapplicableCompanyPRSUAward(the“TotalSharesGranted”),(B)withrespecttoeachCompanyPRSUAwardgrantedfortheperformanceperiodcommencingwiththeCompany’sfiscalyear2019,thenumberofsharesofTechDatacommonstocksubjecttosuchCompanyPRSUAwardimmediatelypriortotheEffectiveTimeshallequal130%oftheTotalSharesGranted,and(C)withrespecttoeachCompanyPRSUAwardgrantedfortheperformanceperiodcommencingwiththeCompany’sfiscalyear2018,thenumberofsharesofTechDatacommonstocksubjecttosuchCompanyPRSUAwardimmediatelypriortotheEffectiveTimeshallequal110%oftheTotalSharesGranted.
Recommendation of the Board (see page [●])
TheBoardhasreviewedandconsideredthetermsandconditionsoftheMergerAgreementandtheMerger.Afterconsultingwithitsoutsidelegalcounselandfinancialadvisorandafterconsiderationofvariousfactors,the
6
Table of Contents
Boardunanimously(i)adoptedtheMergerAgreementandapprovedtheexecution,deliveryandperformancebyTechDataoftheMergerAgreementandtheconsummationofthetransactionscontemplatedthereby,(ii)determinedthattheMergerAgreementandthetransactionscontemplatedtherebywerefairtoandinthebestinterestsofTechDataanditsshareholders,(iii)approvedanddeclaredadvisabletheMergerAgreementandtheconsummationoftheMergerand(iv)determinedtosubmittheMergerAgreementforapprovalandadoptionbyTechData’sshareholdersandrecommendedthattheTechData’sshareholdersapproveandadopttheMergerAgreement.CertainfactorsconsideredbytheBoardinreachingitsdecisiontoadopttheMergerAgreementandtorecommendthatshareholdersapprovetheMergerProposalcanbefoundin“TheMergerProposal(Proposal1)—RecommendationoftheBoardandReasonsfortheMerger”beginningonpage[●].
The Board unanimously recommends that Tech Data shareholders vote:
• “FOR”theMergerProposal;
• “FOR”thenamedexecutiveofficerMerger-relatedcompensationproposal;and
• “FOR”theAdjournmentProposal.
Opinion of Tech Data’s Financial Advisor (see page [●])
InconnectionwiththeMerger,BofASecurities,Inc.(referredto,togetherwithitspredecessor,MerrillLynch,Pierce,Fenner&SmithIncorporated,as“BofASecurities”),TechData’sfinancialadvisor,deliveredtotheBoardawrittenopinion,datedNovember27,2019,astothefairness,fromafinancialpointofviewandasofthedateoftheopinion,totheholdersofTechDatacommonstock(otherthan,totheextentapplicable,TechData,ParentandtheirrespectivewhollyownedSubsidiaries)oftheMergerConsiderationtobereceivedbysuchholdersintheMerger.Thefulltextofthewrittenopinion,datedNovember27,2019,ofBofASecurities,whichdescribes,amongotherthings,theassumptionsmade,proceduresfollowed,factorsconsideredandlimitationsonthereviewundertaken,isattachedasAnnexBtothisproxystatementandisincorporatedbyreferencehereininitsentirety.BofA Securitiesprovided its opinion for the benefit and use of Tech Data’s board of directors (in its capacity as such) in connection with and for purposes of itsevaluation of the Merger. BofA Securities’ opinion does not address any other aspect of the Merger and no opinion or view was expressed as to therelative merits of the Merger in comparison to other strategies or transactions that might be available to Tech Data or in which Tech Data mightengage or as to the underlying business decision of Tech Data to proceed with or effect the Merger. BofA Securities’ opinion does not address anyother aspect of the Merger and does not constitute an opinion or recommendation as to how any shareholder should vote or act in connection withthe Merger or any other matter.
Interests of Tech Data’s Executive Officers and Directors in the Merger (see page [●])
InconsideringtherecommendationoftheBoard,TechDatashareholdersshouldbeawarethatcertaindirectorsandexecutiveofficersofTechDatawillhaveinterestsintheMergerthataredifferentfrom,orinadditionto,theinterestsofTechDatashareholdersgenerallyandwhichmaycreatepotentialconflictsofinterest.TheBoardwasawareoftheseinterestsandconsideredthemwhenitadoptedtheMergerAgreementandapprovedtheMerger.AllemploymentandcompensationarrangementsapplicabletodirectorsorseniorexecutivesoftheCompanyundertheMergerAgreement,orinconnectionwiththeMerger,wereunanimouslyapproved,onbehalfoftheCompany,byvoteofamajorityofthequalifieddirectorswithinthemeaningof,andinthesamemannerasprovidedinandconsistentwithSection607.0832oftheFBCA.Theseinterestsinclude:
• TechData’sexecutiveofficersareentitledtoprotectionsandbenefitsunderTechData’schangeincontrolpolicyintheeventofcertainterminationsofemploymentinconnectionwiththecompletionoftheMerger;
• thetreatmentoftheequityawardsheldbyTechData’sdirectorsandexecutiveofficersasoftheEffectiveTime;
7
Table of Contents
• TechData’sdirectorsandexecutiveofficersareentitledtothepayoutofalloftheiraccountbalancesandbenefitsundercertainnon-qualifiedbenefitplansmaintainedbyTechData;
• TechData’sdirectorsandexecutiveofficersareentitledtoindemnificationandinsurancearrangementspursuanttotheMergerAgreementandTechData’sorganizationaldocuments;and
• TechData’sexecutiveofficersasoftheEffectiveTimewillbecometheinitialexecutiveofficersofthesurvivingcorporation.
Theseinterestsarediscussedinmoredetailinthesectionentitled“TheMergerProposal(Proposal1)—InterestsofTechData’sExecutiveOfficersandDirectorsintheMerger”beginningonpage[●].
Financing of the Merger (see page [●])
Parenthasobtainedequityfinancinganddebtfinancingcommitments(ineachcase,pursuanttotherespectiveCommitmentLetters(asdefinedbelow))forthepurposeoffinancingthetransactionscontemplatedbytheMergerAgreement,repayingorrefinancingcertainexistingindebtednessoftheCompanyanditssubsidiaries,andpayingrelatedfeesandexpenses.
Pursuanttoanequitycommitmentletter,datedasofNovember12,2019,asamendedonNovember27,2019(the“EquityCommitmentLetter”),eachofApolloInvestmentFundIX,L.P.,ApolloOverseasPartners(Delaware)IX,L.P.,ApolloOverseasPartners(Delaware892)IX,L.P.,ApolloOverseasPartnersIX,L.P.andApolloOverseasPartners(Lux)IX,SCSp(the“Sponsors”)havecommitted,severallybutnotjointly,tocapitalizeParentatclosingwithanaggregateequitycontributioninanamountof$3,750,000,000,onthetermsandsubjecttotheconditionssetforthintheEquityCommitmentLetter.
Pursuanttoadebtcommitmentletter,datedasofNovember12,2019(the“OriginalDebtCommitmentLetter”)andanadditionalinitiallenderagreement,datedasofDecember6,2019(the“AdditionalInitialLenderAgreement,”togetherwiththeOriginalDebtCommitmentLetter,the“DebtCommitmentLetter,”and,togetherwiththeEquityCommitmentLetter,the“CommitmentLetters”)aconsortiumoffinancialinstitutions(ineachcase,actingdirectlyorthroughtheirrespectiveaffiliatesorbranches,asappropriate,collectively,the“DebtCommitmentParties”)havecommittedtoprovidetoMergerSub,severallybutnotjointly,uponthetermsandsubjecttotheconditionssetforthintheDebtCommitmentLetter,debtfinancingintheaggregateamountofupto$5,000,000,000.TheconsummationoftheMergerisnotsubjecttoanyfinancingcondition.
Limited Guarantee (see page ([●])
ConcurrentlywiththeexecutionoftheOriginalAgreement,theSponsorsenteredintoalimitedguarantee,asamendedonNovember27,2019(the“LimitedGuarantee”)withtheCompany,pursuanttowhichtheSponsorshaveguaranteedthepaymentoftheterminationfeepayablebyParentundercertaincircumstances,aswellasinterestandexpensesandcertainreimbursementobligationsthatmaybeowedbyParentpursuanttotheMergerAgreement,subjecttothetermsandconditionssetforthintheLimitedGuaranteeandtheMergerAgreement,inanamountnottoexceed$319,444,000intheaggregate.
Antitrust Review Required for the Merger and Other Regulatory Filings (see page [●])
UndertheHart-Scott-RodinoAntitrustImprovementsActof1976,asamended(the“HSRAct”),wecannotcompletetheMergeruntilwehavegivennotificationandfurnishedinformationtotheFederalTradeCommission(“FTC”)andtheAntitrustDivisionoftheDepartmentofJustice(“DOJ”),anduntiltheapplicablewaitingperiodhasexpired.OnNovember26,2019,TechDataandParenteachfiledapremergernotificationandreportformundertheHSRAct,asaresultofwhichtheapplicablewaitingperiodundertheHSRActisscheduledtoexpireonDecember26,2019at11:59p.m.EasternTime,unlessextendediftheDOJorFTCrequestsadditionalinformationanddocumentarymaterial.
8
Table of Contents
TheobligationofthepartiestotheMergerAgreementtoconsummatetheMergerisalsosubjectto(x)theTreasureroftheCommonwealthofAustralia(i)providingwrittennoticethattherearenoobjectionsundertheForeignAcquisitionsandTakeoversAct1975(Cth)andForeignAcquisitionsandTakeoverRegulations2015(the“FATA”)totheacquisitioncontemplatedbytheMergerAgreement,eitheronanunconditionalbasisorsubjectonlytoconditionsacceptabletoParent,actingreasonably;or(ii)notbeingempoweredorbecomingprecludedbypassageoftimefrommakinganyorderordecisionundertheFATAinrespectoftheacquisitioncontemplatedbytheMergerAgreement;whicheveroccursfirst(the“FIRBApproval”),and(y)theexpirationorterminationofanyapplicablewaitingperiodunderthecompetitionlawsoftheEuropeanUnion,Canada,Mexico,Switzerland,Turkey,IndiaandChile,andobtainmentofanyrequiredconsentspursuantthereto(the“CompetitionLaws”).
Whilewehavenoreasontobelieveitwillnotbepossibletocompletetheantitrustrevieworobtaintheforeignregulatoryapprovalsinatimelymanner,thereisnocertaintythatthesewillbecompletedwithintheperiodsoftimecurrentlycontemplatedorthataregulatorychallengetotheMergerwillnotbemade.
Material U.S. Federal Income Tax Consequences of the Merger (see page [●])
Ingeneral,theexchangeofTechDatacommonstockforcashintheMergerwillbeataxabletransactiontoU.S.holders(asdefinedinthesectionentitled“MaterialU.S.FederalIncomeTaxConsequencesoftheMerger”beginningonpage[●])forU.S.federalincometaxpurposesandmayalsobetaxableunderstateandlocalandothertaxlaws.Youshouldreadthesectionentitled“MaterialU.S.FederalIncomeTaxConsequencesoftheMerger”beginningonpage[●].ThetaxconsequencesoftheMergertoyouwilldependonyourparticularcircumstances.YoushouldconsultyourtaxadvisorsregardingtheU.S.federalincometaxconsequencesoftheMergertoyouinyourparticularcircumstances,aswellasthetaxconsequencesarisingunderotherU.S.federaltaxlawsandthelawsofanystate,localorforeigntaxingjurisdiction.
Appraisal Rights
UnderSection607.1302oftheFBCA,solongasTechDatacommonstockcontinuestobelistedontheNASDAQ,appraisalrightswillNOTbeavailabletoTechData’sshareholdersinconnectionwiththeMerger.
Expected Timing of the Merger
WeexpecttocompletetheMergernolaterthanduringthefirsthalfof2020.However,theMergerissubjecttoantitrustreviews,U.S.andforeignregulatoryapprovalsandvariousotherconditions,anditispossiblethatfactorsoutsideofthecontrolofTechData,ParentorMergerSubcouldresultintheMergerbeingcompletedatalatertime,ornotatall.TheremaybeasubstantialamountoftimebetweentheSpecialMeetingandthecompletionoftheMerger.WeexpecttocompletetheMergerpromptlyfollowingthereceiptofallrequiredclearancesandapprovalsandthesatisfactionor,totheextentpermitted,waiveroftheotherconditionstotheconsummationoftheMerger.
No-Shop Period; Restrictions on Solicitation of Acquisition Proposals (see page [●])
PursuanttotheMergerAgreement,until11:59p.m.EasternTimeonDecember9,2019(the“No-ShopPeriodStartDate”),TechDataanditssubsidiariesandtheirrespectivedirectors,officersandotherrepresentativeswerepermittedto(i)solicit,initiate,proposeorinducethemaking,submissionorannouncementof,orencourage,facilitateorassist,anyproposalorofferthatwouldconstitute,orwouldreasonablybeexpectedtoleadto,aCompanyTakeoverProposal,(ii)provideinformation(includingnon-publicinformationanddata)relatingtotheCompanyanditssubsidiariesandaffordaccesstothebusiness,properties,assets,books,recordsorothernon-publicinformation,oranypersonneloftheCompanyanditssubsidiariespursuanttoanacceptableconfidentialityagreement,(iii)engagein,enterinto,continueorotherwiseparticipatein,anydiscussionsornegotiationswithanypersonregardinganyCompanyTakeoverProposal(orinquiries,proposalsoroffersor
9
Table of Contents
othereffortsthatwouldreasonablybeexpectedtoleadtoaCompanyTakeoverProposal)and(iv)cooperatewith,assist,participateinorfacilitateanysuchinquiries,proposals,offers,discussionsornegotiationsoranyeffortorattempttomakeanyCompanyTakeoverProposal.
Atthistime,TechDatamaynot,andmustcauseeachofitssubsidiariesanditsandtheirrespectiveofficersanddirectorsandmustinstructitsanditssubsidiaries’otherrepresentativesnotto,directlyorindirectly,(i)solicit,initiateorknowinglyencourageorfacilitateanyproposalorofferorinquiriesregardingthemakingofanyproposalorofferthatconstitutesorwouldreasonablybeexpectedtoleadtoaCompanyTakeoverProposalor(ii)engagein,continueorotherwiseparticipateinanydiscussionsornegotiationsregarding,orfurnishanyinformationinconnectionwithorforthepurposeofencouragingorfacilitating,anyinquiry,proposalorofferthatconstitutes,orwouldreasonablybeexpectedtoleadto,aCompanyTakeoverProposal(otherthaninresponsetoanunsolicitedinquirythatdidnotarisefromabreachoftheCompany’snon-solicitationobligations(otherthanabreachthatisbothimmaterialandunintentional),solelytoascertainfactsfromthepersonmakingsuchCompanyTakeoverProposalrequiredbyitsfiduciarydutiesunderapplicablelawaboutsuchCompanyTakeoverProposalandthepersonthatmadeit).
PriortothetimetheCompanyShareholderApprovalisobtained,iftheCompanyreceivesabonafidewrittenCompanyTakeoverProposalfromathirdpartythatdidnotresultfromabreachoftheCompany’snon-solicitationobligations(otherthanabreachthatisbothimmaterialandunintentional)andthattheBoarddeterminesingoodfaith,initsreasonablediscretionafterconsultationwithitsindependentfinancialadvisorsand/oroutsidelegalcounsel,(i)thatsuchCompanyTakeoverProposalconstitutesorwouldreasonablybeexpectedtoleadtoaCompanySuperiorProposaland(ii)thatfailuretotakeactionunderclauses(x)and(y)belowwouldbeinconsistentwithitsfiduciarydutiesunderapplicablelaw,thentheCompanyanditsrepresentativesmay(x)furnishinformation(includingnon-publicinformation)tosuchpersonsandtheirrepresentativespursuanttoanacceptableconfidentialityagreementand(y)engageinorotherwiseparticipateindiscussionsornegotiationswithsuchpersonanditsrepresentatives,ineachcase,subjecttotherequirementthattheCompanymustgiveParentwrittennoticeofsuchdeterminationpromptly(andinanyeventwithin24hours)aftertheBoardmakessuchdetermination;andmakeavailabletoParentandMergerSubanymaterialnon-publicinformationordataconcerningtheCompanyoritssubsidiariesthatisprovidedtoanysuchpersonwhichwasnotpreviouslymadeavailabletoParentorMergerSubpriortoorsubstantiallyconcurrentlywiththetimeitisprovidedtosuchperson.
Conditions to the Closing of the Merger (see page [●])
Eachparty’sobligationtocompletetheMergerissubjecttothesatisfactionorwaiveratorpriortotheEffectiveTimeofthefollowingconditions:
• nolaw,orderorinjunctionhavingbeenenacted,issuedorpromulgatedbyagovernmentalauthorityofcompetentjurisdictionthatisineffectandthatrestrains,enjoinsorprohibitstheconsummationoftheMerger;
• theapprovaloftheMergerProposalbytheaffirmativevoteofatleastamajorityofallvotesentitledtobecastbytheholdersofTechData
commonstockoutstandingontherecorddateontheMergerProposalinaccordancewiththeapplicableprovisionsoftheFBCA(the“CompanyShareholderApproval”);
• theexpirationorterminationoftheapplicablewaitingperiodundertheHSRAct,andthoseoftheantitrustlawsofotherspecifiedjurisdictions,eachasfurtherdescribedinthesectionsentitled“TheMergerProposal(Proposal1)—AntitrustReviewRequiredfortheMergerandOtherRegulatoryFilings”and“TheMergerAgreement—ConditionstotheClosingoftheMerger”beginningonpages[●]and[●],respectively,andallrequiredconsentspursuanttheretoshallhavebeenobtained;and
• theFIRBApproval,asfurtherdescribedinthesectionentitled“TheMergerAgreement—ConditionstotheClosingoftheMerger”.
10
Table of Contents
TheobligationsofParentandMergerSubtocompletetheMergeraresubjecttothesatisfactionorwaiverofthefollowingadditionalconditions:
• theaccuracyoftherepresentationsandwarrantiesoftheCompanyasofthedateoftheOriginalAgreementandtheclosingdate(excepttotheextentsuchrepresentationandwarrantyspeaksasofanyearlierdate,inwhichcasesuchrepresentationandwarrantyshallbetrueandcorrectasofsuchearlierdate),subjecttocertainmaterialitystandardsdescribedunder“TheMergerAgreement—ConditionstotheClosingoftheMerger”beginningonpage[●];
• theperformancebytheCompanyinallmaterialrespectsofthecovenants,obligationsandagreementsrequiredtobeperformedorcompliedwithundertheMergerAgreementatorpriortotheclosing;provided,thattheCompany’sobligationsinrespectofcertaincovenantsregardingfinancingcooperationshallbedeemedsatisfiedunlessthedebtfinancinghasnotbeenobtainedprimarilyasaresultoftheCompany’swillfulbreachofsuchobligations;and
• noCompanyMaterialAdverseEffecthavingoccurredafterthedateoftheOriginalAgreement.
TheobligationsofTechDatatocompletetheMergeraresubjecttothesatisfactionorwaiverofthefollowingadditionalconditions:
• theaccuracyoftherepresentationsandwarrantiesofParentandMergerSubasofdateoftheOriginalAgreementandtheclosingdate(excepttotheextentsuchrepresentationandwarrantyspeaksasofanyearlierdate,inwhichcasesuchrepresentationandwarrantyshallbetrueandcorrectasofsuchearlierdate),subjecttocertainmaterialitystandardsdescribedunder“TheMergerAgreement—ConditionstotheClosingoftheMerger”beginningonpage[●];and
• theperformancebyeachofParentandMergerSubinallmaterialrespectsofthecovenants,obligationsandagreementsrequiredtobeperformedorcompliedwithundertheMergerAgreementatorpriortotheclosing.
Additionally,iftheMarketingPeriod(describedbelowunder“TheMergerAgreement—FinancingandFinancingCooperation”)hasnotendedwhenalloftheconditionstoclosingaresatisfied,thentheclosingwilloccurontheearliertooccurof(i)abusinessdayduringtheMarketingPerioddeterminedbyParentwithnolessthanthreebusinessdays’priorwrittennoticetotheCompanyor(ii)thethirdbusinessdayfollowingthefinaldayoftheMarketingPeriod(subject,ineachcase,tothesatisfactionorwaiverofallconditionssetforthintheMergerAgreement).
Change in the Tech Data Board Recommendation
TheBoardhasunanimouslyrecommendedthatTechDatashareholdersvote“FOR”theMergerProposal.Generally,theBoardmustnoteffectaChangeofRecommendation.
However,theMergerAgreementpermitstheBoardtoeffectaChangeofRecommendationand/or,inresponsetoaCompanySuperiorProposal,terminatetheMergerAgreementinordertoenterintoanacquisitionagreementprovidingforsuchCompanySuperiorProposal,iftheCompanyhasreceivedaCompanySuperiorProposalthatdidnotresultfromabreachoftheCompany’snon-solicitationobligations,subjecttotherequirementsthat:
• theCompanyprovidespriorwrittennoticetoParent,atleastthreebusinessdaysinadvance,thatitintendstoeffectaChangeofRecommendationand/orterminatetheMergerAgreementtoenterintoaCompanySuperiorProposal,whichnoticespecifiestheidentityofthepersonmakingsuchCompanySuperiorProposalandthematerialtermsthereofandincludesacopyoftheproposedCompanySuperiorProposal,theproposedacquisitionagreementwithrespecttheretoandallrelateddocumentation;
• duringthethreebusinessdayperiodfollowingthedateonwhichnoticewasreceived(oraonebusinessdayperiod,intheeventofanychangetothefinancialtermsorothermaterialtermsofsuchCompany
11
Table of Contents
SuperiorProposal),theCompanyanditsrepresentativesnegotiatewithParentingoodfaith(totheextentParentdesirestonegotiate)tomakesuchadjustmentstothetermsandconditionsoftheMergerAgreementasParentmaypropose;and
• upontheconclusionoftheapplicablenegotiationperiod,theBoardconsideringoodfaithanyrevisionstothetermsoftheMergerAgreement
proposedinwritingbyParentanddetermines,afterconsultationwiththeCompany’sindependentfinancialadvisorsandoutsidelegalcounsel,thattheCompanyTakeoverProposalcontinuestoconstituteaCompanySuperiorProposal.
Inaddition,theBoardmayalsoeffectaChangeofRecommendationinresponsetoanInterveningEventiftheBoarddeterminesingoodfaithinitsreasonablediscretion,afterconsultationwithitsindependentfinancialadvisorandoutsidelegalcounsel,thatthefailuretoeffectaChangeofRecommendationwouldbeinconsistentwithitsfiduciarydutiesunderapplicablelaw,subjecttoathree-businessdaynegotiationperiodwithParent.
Termination of the Merger Agreement and Termination Fees (see page [●])
TheMergerAgreementmaybeterminatedbyeitherpartyandtheMergermaybeabandonedincertaincircumstances,includingif(i)theMergerisnotcompletedbyAugust12,2020(the“TerminationDate”),subjecttocertainlimitations,(ii)TechData’sshareholdersfailtoapprovetheMergerProposal,(iii)agovernmentalauthorityofcompetentjurisdictionhasissuedafinalnon-appealablegovernmentalorderprohibitingtheMergeror(iv)theotherpartybreachesitsrepresentations,warrantiesorcovenantsintheMergerAgreementwhichgivesrisetothefailureofaconditiontotheconsummationoftheMerger,subjectincertaincases,totherightofthebreachingpartytocurethebreach.ParentandtheCompanymayalsoterminatetheMergerAgreementbymutualwrittenconsent.
TheCompanyisalsoentitledtoterminatetheMergerAgreement,andreceiveaterminationfeeofapproximately$315.9millionfromParentif(i)MergerSubfailstoconsummatetheMergerfollowingthecompletionoftheMarketingPeriodandsatisfactionorwaiverofcertainclosingconditionsor(ii)ifParentorMergerSubotherwisebreachesitsobligationsundertheMergerAgreementwhichbreachorfailureistheprimaryreasonforthefailureoftheMergertobeconsummated.
IftheMergerAgreementisterminatedbecause(i)beforereceiptoftheCompanyShareholderApproval,theBoardmakesaChangeofRecommendationortheCompanywillfullyandmateriallybreachesitsnon-solicitationobligations,(ii)theCompanyacceptsaCompanySuperiorProposal,or(iii)(x)theMergerhasnotclosedbytheTerminationDate,TechData’sshareholdersfailtoadopttheMergerProposalortheCompanybreachedorfailedtoperformanyofitsrepresentations,warranties,covenantsorotheragreementswhichgivesrisetothefailureofaconditiontotheconsummationoftheMerger(subjecttoacertaincureperiods),(y)anypersonpubliclyannouncedabonafideCompanyTakeoverProposalafterthedateoftheOriginalAgreementanditisnotwithdrawnbeforetheapprovalofthetransactionand(z)theCompanyentersintoadefinitiveagreementwithrespecttoanycompetingtransaction,orcompletesacompetingtransaction,within12monthsoftermination,theterminationfeepayablebytheCompanytoParentwillbe$184.3million;providedthatalowerfeeofapproximately$89.5millionwillapplywithrespecttoaterminationtoenterintoanacquisitionagreementprovidingforaCompanySuperiorProposalbeforetheNo-ShopPeriodStartDate.
Directors’ and Officers’ Indemnification and Insurance (see page [●])
ForaperiodofsixyearsaftertheEffectiveTime,Parentandthesurvivingcorporationmust,tothefullextentpermittedunderapplicablelaw,(i)indemnifyandholdharmlesseachpresentandformer(orfuture,butpriortotheEffectiveTime),directororofficerofTechDataoranyofitssubsidiariesandanypersonwhoservedasadirector,officermember,trusteeorfiduciaryofanothercorporation,partnershipjointventure,trust,pensionorotheremployeebenefitplanorenterpriseattherequestoforforthebenefitofTechDataoritssubsidiaries(collectively,the“CoveredPersons”)inconnectionwithanyD&OClaim(asdefinedintheMergerAgreement),
12
Table of Contents
againstanylosses,claims,damages,liabilities,claimexpenses,judgments,fines,penaltiesandamountspaidinsettlementrelatingtoorresultingfromsuchD&OClaimand(ii)promptlyadvanceclaimexpensesasincurredbytheCoveredPersonsinconnectionwithanyD&OClaim,providedthatanyCoveredPersontowhomexpensesareadvancedprovidesanundertakingtorepaytheadvanceifitisultimatelydeterminedbyacourtofcompetentjurisdictionthatsuchCoveredPersonisnotentitledtoindemnification.
Inaddition,priortotheEffectiveTime,TechDatamayobtainandprepaythepremiumforasixyear“tail”insurancepolicyforD&OClaimsarisingfromfacts,acts,eventsoromissionsthatoccurredonorpriortotheEffectiveTime.IftheCompanyfailstoobtainsuchtailpolicypriortotheEffectiveTime,Parentorthesurvivingcorporationmustobtainsuchatailpolicy.AnysuchtailpolicymusthaveatleastthesamecoverageandamountsandcontaintermsandconditionsthatarenolessfavorabletothecoveredindividualsastheCompany’sanditssubsidiaries’existingdirectors’andofficers’insurancepolicywithaclaimsperiodofsixyearsfromtheEffectiveTime.Notwithstandingtheforegoing,innoeventwillTechDataanditssubsidiaries(orParent,asapplicable)berequiredtoexpendapremiuminexcessof250%oftheaggregateannualamountcurrentlypaidbytheCompanyanditssubsidiariesforsuchinsuranceand,iftheannualpremiumofsuchinsurancecoverageexceedssuchmaximumamount,TechData,Parentorthesurvivingcorporationwillobtainapolicywiththegreatestcoverageavailableforthemaximumamount.
Delisting and Deregistration of Tech Data Common Stock (see page [●])
AspromptlyaspracticablefollowingtheeffectivenessoftheMerger,TechDatacommonstockwillbedelistedfromtheNASDAQandderegisteredundertheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”).
Market Prices of Tech Data Common Stock (see page [●])
OnOctober15,2019,thelasttradingdaypriortopublishedmarketspeculationregardingapotentialtransactioninvolvingTechData,theclosingpricepershareofTechDatacommonstockontheNASDAQwas$111.34.TheclosingsalespriceofTechDatacommonstockontheNASDAQon[●],themostrecentpracticabledatepriortothedateofthisproxystatement,was$[●]pershare.YouareencouragedtoobtaincurrentmarketpricesofTechDatacommonstockinconnectionwithvotingyoursharesofTechDatacommonstock.
13
Table of Contents
QUESTIONS AND ANSWERS ABOUT THE SPECIAL MEETING AND THE MERGER
ThefollowingarebriefanswerstocertainquestionsthatyoumayhaveregardingtheMerger,theMergerAgreement,theSpecialMeetingandtheproposalsbeingconsideredattheSpecialMeeting.WeurgeyoutocarefullyreadtheremainderofthisproxystatementbecausetheinformationinthissectiondoesnotprovidealloftheinformationthatmightbeimportanttoyouwithrespecttotheMergerandtheSpecialMeeting.Additionalimportantinformationisalsocontainedintheannexesattachedtothisproxystatementandthedocumentsreferredtoorincorporatedbyreferenceintothisproxystatement.
Q. Why am I receiving these proxy materials?
A. OnNovember12,2019,TechDataenteredintoaMergerAgreement,whichwasamendedonNovember27,2019,pursuanttowhichMergerSubwillmergewithandintoTechData,withTechDatacontinuingasthesurvivingcorporationintheMerger.AcopyoftheMergerAgreementisattachedtothisproxystatementasAnnex Aandisincorporatedbyreferenceherein.InordertocompletetheMerger,TechDatashareholdersmustvotetoapprovetheMergerProposalinaccordancewiththeapplicableprovisionsoftheFBCA.TheapprovaloftheMergerProposalbyourshareholdersisaconditiontotheconsummationoftheMerger.YouarereceivingthisproxystatementinconnectionwiththesolicitationbytheBoardofproxiesofTechDatashareholderstovotetheirsharesinfavoroftheMergerProposal.
Youarealsobeingaskedtovoteonaproposaltoapproveonanon-binding,advisorybasis,certaincompensationthatwillormaybepaidbyTechDatatoitsnamedexecutiveofficersthatisbasedonorotherwiserelatestotheMergerandonaproposaltoapprovetheadjournmentoftheSpecialMeeting,fromtimetotime,ifnecessaryorappropriate,includingtosolicitadditionalproxiesifthereareinsufficientvotesatthetimeoftheSpecialMeetingtoapprovetheproposaltoapprovetheMergerProposalorintheabsenceofaquorum.
Thisproxystatement,whichyoushouldreadcarefully,containsimportantinformationabouttheMerger,theMergerAgreementandtheSpecialMeetingofourshareholdersandthematterstobevotedonthereat.TheenclosedmaterialsallowyoutosubmitaproxytovoteyourshareswithoutattendingtheSpecialMeetingandtoensurethatyoursharesarerepresentedandvotedattheSpecialMeeting.
Yourvoteisveryimportant.EvenifyouplantoattendtheSpecialMeeting,weencourageyoutosubmitaproxyassoonaspossible.
Q. What is the proposed transaction?
A. IftheMergerProposalisapprovedbyTechDatashareholdersinaccordancewiththeapplicableprovisionsoftheFBCAandtheotherconditionstotheconsummationoftheMergercontainedintheMergerAgreementaresatisfiedorwaived,MergerSubwillmergewithandintoTechData,withTechDatacontinuingasthesurvivingcorporationintheMergerandadirectwhollyownedsubsidiaryofParent.Asnotedelsewhereherein,ParentandMergerSubareaffiliatesofcertainfundsmanagedbyaffiliatesofApolloGlobalManagement,Inc.
Q. What will I receive in the Merger if it is completed?
A. UnderthetermsoftheMergerAgreement,iftheMergeriscompleted,youwillbeentitledtoreceive$145.00incash,withoutinterestandsubjecttoanyapplicablewithholdingtaxes,foreachshareofTechDatacommonstockyouown,whichrepresentsapremiumof30.2%totheCompany’sclosingsharepriceonOctober15,2019,whichwasthelasttradingdaypriortopublishedmarketspeculationregardingapotentialtransactioninvolvingtheCompany.Forexample,ifyouown100sharesofTechDatacommonstock,youwillbeentitledtoreceive$14,500incashinexchangeforyourshares,withoutinterestandsubjecttoanyapplicablewithholdingtaxes.YouwillnotbeentitledtoreceivesharesinthesurvivingcorporationorinParent.
14
Table of Contents
Q. Where and when is the Special Meeting, and who may attend?
A. TheSpecialMeetingwillbeheldattheRaymundCenter,5350TechDataDrive,Clearwater,Florida33760,on[●],2020at[●],EasternTime.Themeetingroomwillopenat[●]EasternTimeandregistrationwillbeginatthattime.ShareholdersofrecordasoftherecorddateoftheSpecialMeetingmayattendthemeeting.AllshareholdersandproxyholderswillneedproofofidentificationalongwiththeirproxycardorproofofstockownershiptoentertheSpecialMeeting.Beneficialownersofsharesheldin“streetname”whowishtoattendthemeetingmustpresentproofofownershipofTechDatacommonstockasoftherecorddate,suchasabankorbrokerageaccountstatement,andwillonlybeabletovoteattheSpecialMeetingiftheyhavealegalproxy,executedintheirfavor,fromtheshareholderofrecord(bank,brokeragefirmorothernominee)givingthemtherighttovotethesharesattheSpecialMeeting.
Q. Who can vote at the Special Meeting?
A. AllTechDatashareholdersofrecordasofthecloseofbusinesson[●],therecorddatefortheSpecialMeeting,areentitledtoreceivenoticeof,attendandvoteattheSpecialMeeting,oranyadjournmentorpostponementthereof.EachshareofTechDatacommonstockisentitledtoonevoteonallmattersthatcomebeforetheSpecialMeeting.Ontherecorddate,therewere[●]sharesofTechDatacommonstockissuedandoutstanding,heldbyapproximately[●]holdersofrecord.
Q. What matters will be voted on at the Special Meeting?
A. AttheSpecialMeeting,youwillbeaskedtoconsiderandvoteonthefollowingproposals:
• theMergerProposal;
• thenamedexecutiveofficerMerger-relatedcompensationproposal;and
• theAdjournmentProposal.
ShareholdersmayalsobeaskedtotransactsuchotherbusinessasmayproperlybebroughtbeforetheSpecialMeetingoranyadjournmentsorpostponementsoftheSpecialMeeting,byoratthedirectionoftheBoard.
Q. What is the position of the Board regarding the Merger?
A. Afterconsultingwithitsoutsidelegalcounselandfinancialadvisorandafterconsiderationofvariousfactors,theBoardhasunanimously(i)adoptedtheMergerAgreementandapprovedtheexecution,deliveryandperformancebyTechDataoftheMergerAgreementandtheconsummationofthetransactionscontemplatedthereby,(ii)determinedthattheMergerAgreementandthetransactionscontemplatedtherebywerefairtoandinthebestinterestsofTechDataanditsshareholders,(iii)approvedanddeclaredadvisabletheMergerAgreementandtheconsummationoftheMergerand(iv)determinedtosubmittheMergerAgreementforapprovalandadoptionbyTechData’sshareholdersandrecommendedthattheTechData’sshareholdersapproveandadopttheMergerAgreement
Q. How does the Board recommend that I vote on the proposals to be considered at the Special Meeting?
A. TheBoardunanimouslyrecommendsthatyouvote:
• “FOR”theMergerProposal;
• “FOR”thenamedexecutiveofficerMerger-relatedcompensationproposal;and
• “FOR”theAdjournmentProposal.
15
Table of Contents
Q. What vote is required to approve the Merger Proposal?
A. TheMergerProposalwillbeapprovedifshareholdersholdingatleastamajorityofallvotesentitledtobecastbythesharesofTechDatacommonstockoutstandingontherecorddatevote“FOR”theproposal.
Q. What vote is required to approve the named executive officer Merger-related compensation proposal and the Adjournment Proposal?
A. EachofthenamedexecutiveofficerMerger-relatedcompensationproposalandtheAdjournmentProposalwillbeapprovedifatleastamajorityofthevotesthatarecastattheSpecialMeetingare“FOR”eachsuchproposal.
Q. Is the Merger expected to be taxable to holders of Tech Data common stock?
A. Ingeneral,theexchangeofTechDatacommonstockforcashintheMergerwillbeataxabletransactiontoU.S.holders(asdefinedinthesectionentitled“MaterialU.S.FederalIncomeTaxConsequencesoftheMerger”beginningonpage[●])forU.S.federalincometaxpurposesandmayalsobetaxableunderstateandlocalandothertaxlaws.Youshouldreadthesectionentitled“MaterialU.S.FederalIncomeTaxConsequencesoftheMerger”beginningonpage[●].ThetaxconsequencesoftheMergertoyouwilldependonyourparticularcircumstances.YoushouldconsultyourtaxadvisorsregardingtheU.S.federalincometaxconsequencesoftheMergertoyouinyourparticularcircumstances,aswellasthetaxconsequencesarisingunderotherU.S.federaltaxlawsandthelawsofanystate,localorforeigntaxingjurisdiction.
Q. What other effects will the Merger have on Tech Data?
A. IftheMergeriscompleted,TechDatacommonstockwillbedelistedfromtheNASDAQandderegisteredundertheExchangeAct,andTechDatawillnolongerberequiredtofileperiodicreportswiththeSECwithrespecttoTechDatacommonstock,ineachcaseinaccordancewithapplicablelaw,rulesandregulations.FollowingthecompletionoftheMerger,TechDatacommonstockwillnolongerbepubliclytradedandyouwillnolongerhaveanyinterestinTechData’sfutureearningsorgrowth.Inaddition,fromandafterthedatetheMergeriscompleted,eachshareofTechDatacommonstock(otherthancanceledshares)youholdwillrepresentonlytherighttoreceive$145.00incash,withoutinterestandsubjecttoanyapplicablewithholdingtaxes.
Q. When is the Merger expected to be completed?
A. Assumingtimelysatisfactionofnecessaryclosingconditions,includingtheapprovalbyourshareholdersoftheMergerProposal,thepartiestotheMergerAgreementexpecttocompletetheMergernolaterthanduringthefirsthalfof2020.However,TechDatacannotassurecompletionbyanyparticulardate,ifatall.BecausetheMergerissubjecttoanumberofconditions,includingthereceiptofshareholderapprovaloftheMergerProposal,theexpirationofthewaitingperiodundertheHSRActandtheapprovalofcertainforeignregulatoryapprovalsorexpirationofthewaitingperiodunderapplicableforeignregulationsassetforthintheMergerAgreement,theexacttimingoftheMergercannotbedeterminedatthistimeandwecannotguaranteethattheMergerwillbecompleted.
Q. What happens if the Merger is not completed?
A. IftheMergerProposalisnotapprovedbytherequisitevoteofTechDatashareholders,oriftheMergerisnotcompletedforanyotherreason,theCompany’sshareholderswillnotreceiveanypaymentfortheirsharesofTechDatacommonstockinconnectionwiththeMerger.Instead,theCompanywillremainapubliccompany,andsharesofTechDatacommonstockwillcontinuetoberegisteredundertheExchange
16
Table of Contents
Act,aswellaslistedandtradedontheNASDAQ.IntheeventthateitherTechDataorParentterminatestheMergerAgreement,then,incertainspecifiedcircumstances,TechDatamayberequiredtopayParentaterminationfeeofapproximately$184.3million(the“CompanyTerminationFee”),orParentmayberequiredtopayTechDataaterminationfeeofapproximately$315.9million(the“ParentTerminationFee”),asapplicable.Formoreinformationontheseterminationfees,seethesectionofthisproxystatemententitled“TheMergerAgreement—TerminationFeesandExpenses.”
Q. How will our directors and executive officers vote on the Merger Proposal?
A. EachofthedirectorsandexecutiveofficersofTechDatahaveinformedTechDatathat,asofthedateofthisproxystatement,theyintendtovoteinfavoroftheMergerProposal(althoughnoneofthemisobligatedtodoso).
AsoftherecorddatefortheSpecialMeeting,thedirectorsandexecutiveofficersofTechDataowned,intheaggregate,[●]sharesofTechDatacommonstock,representing[●]%oftheissuedandoutstandingTechDatacommonstockentitledtovoteattheSpecialMeeting.
Q. Do any of Tech Data’s directors or executive officers have interests in the Merger that may differ from or be in addition to my interests as a
shareholder?
A. Yes.InconsideringtherecommendationoftheBoardwithrespecttotheMergerProposal,youshouldbeawarethatourdirectorsandexecutiveofficershaveinterestsintheMergerthataredifferentfrom,orinadditionto,theinterestsofourshareholdersgenerally.TheBoardwasawareofandconsideredthesedifferinginterests,totheextentsuchinterestsexistedatthetime,amongothermatters,inevaluatingandnegotiatingtheMergerAgreementandtheMerger,indeterminingtoadopttheMergerAgreement,andinrecommendingthattheMergerProposalbeapprovedbyTechDatashareholders.AllemploymentandcompensationarrangementsapplicabletodirectorsorseniorexecutivesoftheCompanyundertheMergerAgreement,orinconnectionwiththeMerger,wereunanimouslyapproved,onbehalfoftheCompany,byvoteofamajorityofthequalifieddirectorswithinthemeaningof,andinthesamemannerasprovidedinandconsistentwithSection607.0832oftheFBCA.Seethesectionentitled“TheMergerProposal(Proposal1)—InterestsofTechData’sExecutiveOfficersandDirectorsintheMerger”beginningonpage[●]formoreinformation.
Q. Why am I being asked to consider and vote on the named executive officer Merger-related compensation proposal?
A. SECrulesrequireTechDatatoseekapprovalonanon-binding,advisorybasiswithrespecttocertainpaymentsandbenefitsthatwillormaybemadeorprovidedtoTechData’snamedexecutiveofficersinconnectionwiththeMerger.ApprovalofthenamedexecutiveofficerMerger-relatedcompensationproposal,however,isnotrequiredtocompletetheMerger.IftheMergerProposalisapprovedbytheTechData’sshareholdersandtheMergeriscompleted,theMerger-relatedcompensationwillbepaidtoTechData’snamedexecutiveofficersinaccordancewiththetermsoftheircompensationagreementsandarrangementsevenifshareholdersfailtoapprovethenamedexecutiveofficerMerger-relatedcompensationproposal.
Q. Who is soliciting my vote? Who will pay for the cost of this proxy solicitation?
A. TheBoardissolicitingyourproxy,andTechDatawillbearthecostofsolicitingproxies.MacKenziehasbeenretainedtoassistwiththesolicitationofproxies,andthefeesandexpensesofMacKenzie,plusitsreasonabledocumentedout-of-pocketexpenseswillbepaidbyTechData.Solicitationinitiallywillbemadebymail.TechDataandMacKenziealsowillrequestthatbanks,brokeragefirms,andothercustodians,nomineesandfiduciariessendproxymaterialstothebeneficialownersofsharesofTechDatacommonstockandwill,ifrequested,reimbursethemfortheirreasonableout-of-pocketexpensesindoingso.
17
Table of Contents
Q. What do I need to do now? If I am going to attend the Special Meeting, should I still submit a proxy?
A. Carefullyreadandconsidertheinformationcontainedinandincorporatedbyreferenceintothisproxystatement,includingtheattachedannexes.WhetherornotyouexpecttoattendtheSpecialMeetinginperson,pleasesubmitaproxytovoteyoursharesaspromptlyaspossiblesothatyoursharesmayberepresentedandvotedattheSpecialMeeting.
Q. How do I vote if my shares are registered directly in my name?
A. Ifyoursharesareregistereddirectlyinyournamewithourtransferagent,youareconsidereda“shareholderofrecord.”ShareholdersofrecordcanvotetheirsharesofTechDatacommonstockinthefollowingfourways:
• By Internet—Youmaysubmityourproxybygoingto[●]andbyfollowingtheinstructionsonhowtocompleteanelectronicproxycard.Youwillneedthe16-digitnumberincludedonyourproxycardinordertovotebyInternet.
• By Telephone—Youmaysubmityourproxybydialing[●]andbyfollowingtherecordedinstructions.Youwillneedthe16-digitnumberincludedonyourproxycardinordertovotebytelephone.
• By Mail—Youmayvotebymailbyindicatingyourvotebycompleting,signinganddatingtheproxycardwhereindicatedandbymailingorotherwisereturningthecardintheenvelopethatwillbeprovidedtoyou.Youshouldsignyournameexactlyasitappearsontheproxycard.Ifyouaresigninginarepresentativecapacity(forexample,asguardian,executor,trustee,custodian,attorneyorofficerofacorporation),indicateyournameandtitleorcapacity.
• At the Special Meeting—IfyouareashareholderofrecordandprefertovoteyoursharesattheSpecialMeeting,youmustbringproofofidentificationalongwithyourproxycardorproofofownership.
EvenifyouplantoattendtheSpecialMeeting,weencourageyoutosubmitaproxyinadvancebyInternet,telephoneormailsothatyourshareswillbevotedifyoulaterdecidenottoattendtheSpecialMeeting.TelephoneandInternetfacilitiesforthesubmissionofaproxytovoteshareswillbeavailable24hoursadayandwillcloseat11:59p.m.EasternTimeon[●],2020.Proxycardsmailedwithrespecttosharesmustbereceivednolaterthan[●],2020inordertobecountedinthevote.
Ifyoubeneficiallyownyoursharesandreceiveavotinginstructionform,youcanvotebyfollowingtheinstructionsonyourvotinginstructionform.Pleaserefertoinformationfromyourbank,brokerorothernomineeonhowtosubmitvotinginstructions.Shareholderswhoowntheirsharesin“streetname”arenotabletovoteattheSpecialMeetingunlesstheyhavealegalproxy,executedintheirfavor,fromtheshareholderofrecord(bank,brokeragefirmorothernominee)givingthemtherighttovotetheshares.
Q. How do I vote if my shares are held in the name of my bank, brokerage firm or other nominee?
A. Ifyoursharesareheldbyyourbank,brokeragefirmorothernominee,youareconsideredthebeneficialownerofsharesheldin“streetname”andyouwillreceiveaformfromyourbank,brokeragefirmorothernomineeseekinginstructionfromyouastohowyoursharesshouldbevoted.Ifyoubeneficiallyownyoursharesandreceiveavotinginstructionform,youcanvotebyfollowingtheinstructionsonyourvotinginstructionform.Pleaserefertoinformationfromyourbank,brokeragefirmorothernomineeonhowtosubmitvotinginstructions.ShareholdersmaybeabletovotebytelephoneandbyInternet.Shareholderswhoowntheirsharesin“streetname”arenotabletovoteattheSpecialMeetingunlesstheyhaveaproxy,executedintheirfavor,fromtheshareholderofrecord(bank,brokeragefirmorothernominee)givingthemtherighttovotetheshares.
18
Table of Contents
Q. What is a proxy?
A. Aproxyisyourlegaldesignationofanotherperson,referredtoasa“proxy,”tovoteyoursharesofTechDatacommonstock.ThewrittendocumentdescribingthematterstobeconsideredandvotedonattheSpecialMeetingiscalleda“proxystatement.”ThedocumentusedtodesignateaproxytovoteyoursharesofTechDatacommonstockiscalleda“proxycard.”
Q. If a shareholder gives a proxy, how are the shares voted?
A. Regardlessofthemethodyouchoosetovote,theindividualsnamedontheenclosedproxycard,oryourproxies,willvoteyoursharesinthewayyouindicate.WhencompletingtheInternetortelephoneprocessforsubmittingaproxy,youmayspecifywhetheryoursharesshouldbevoted“FOR”or“AGAINST”ortoabstainfromvotingonall,someornoneofthespecificitemsofbusinesstocomebeforetheSpecialMeeting.
Ifyouproperlysignandreturnyourproxycardbutdonotmarktheboxesshowinghowyoursharesshouldbevotedonamatter,thesharesrepresentedbyyourproperlysignedproxywillbevotedasrecommendedbytheBoardwithrespecttoeachproposal.
Q. Can I change or revoke my proxy after it has been submitted?
A. Yes.YoucanchangeorrevokeyourproxyatanytimebeforethefinalvoteattheSpecialMeeting.Ifyouaretheshareholderofrecord,youmaychangeorrevokeyourproxyby:
• sendingawrittenstatementtothateffecttoourCorporateSecretary,providedsuchstatementisreceivednolaterthan[●],2020;
• submittinganewproxybyInternetortelephoneatalatertimebeforetheclosingofthosevotingfacilitiesat11:59p.m.EasternTimeon[●],2020;
• submittingaproperlysignedproxycardwithalaterdatethatisreceivednolaterthan[●],2020;or
• attendingtheSpecialMeetingandvotinginperson.
Ifyouholdsharesin“streetname,”youmaysubmitnewvotinginstructionsbycontactingyourbank,brokerorothernominee.YoumayalsochangeyourvoteorrevokeyourproxyinpersonattheSpecialMeetingifyouobtainaproxy,executedinyourfavor,fromtheshareholderofrecord(bank,brokeragefirmorothernominee)givingyoutherighttovotetheshares.
Ifyousubmitaproxyorprovideinstructionstovoteyoursharesanddonotthereafterrevokesuchproxyorchangesuchinstructionsinaccordancewithoneofthemethodssetforthabove,yourshareswillberepresentedandvotedattheSpecialMeeting.
Q. How many shares of Tech Data common stock must be present to constitute a quorum for the Special Meeting? What if there is no quorum?
A. UnderourbylawsandtheFBCA,theholders(asoftherecorddate)ofamajorityoftheoutstandingsharesofTechDatacommonstockentitledtovoteonamatterattheSpecialMeeting,whetherrepresentedinpersonorbyproxywillconstituteaquorumonthatmattersattheSpecialMeeting.TheremustbeaquorumforbusinesstobeconductedattheSpecialMeeting.Ifaquorumisnotpresent,theshareholdersholdingamajorityofthesharesofTechDatacommonstockpresentinpersonorbyproxyattheSpecialMeetingandentitledtovotethereatmayadjourntheSpecialMeetingfromtimetotime.FailureofaquorumtobepresentattheSpecialMeetingwillnecessitateanadjournmentorpostponementoftheSpecialMeetingandmaysubjectTechDatatoadditionalexpense.Ifanewrecorddateisormustbefixedunderlaw,anoticeoftheadjournedmeetingmustbegiventoeachshareholderofrecordasofthenewrecorddateandwhoisotherwiseentitledtonoticeofandvoteatsuchmeeting.Asofthecloseofbusinessontherecorddate,therewere[●]sharesofTechDatacommonstockoutstanding.Accordingly,[●]sharesofTechDatacommonstockmustbepresentorrepresentedbyproxyattheSpecialMeetingtoconstituteaquorum.
19
Table of Contents
Q. What if I abstain from voting on any proposal?
A. IfyouattendtheSpecialMeetingorsubmit(anddonotthereafterrevoke)aproperlyexecutedproxycard,evenifyouabstainfromvoting,yoursharesofTechDatacommonstockwillstillbecountedforpurposesofdeterminingwhetheraquorumispresentattheSpecialMeeting,butwillnotbecountedforpurposesofvotingontheproposals.Asaresult,yourabstentionfromvotingwillhavethesameeffectasavote“AGAINST”theMergerProposal.YourabstentionfromvotingwillhavenoeffectontheoutcomeofthenamedexecutiveofficerMerger-relatedcompensationproposalortheAdjournmentProposal.
Q. Will my shares be voted if I do not sign and return my proxy card or vote by telephone or over the Internet or in person at the Special
Meeting?
A. IfyouareashareholderofrecordofTechDataandyoudonotattendtheSpecialMeeting,signandreturnyourproxycardbymail,orsubmityourproxybytelephoneorovertheInternet,yourshareswillnotbevotedattheSpecialMeetingandwillnotbecountedaspresentforpurposesofdeterminingwhetheraquorumexists.ThefailuretoreturnyourproxycardorotherwisevoteyoursharesattheSpecialMeetingwillhavenoeffectontheoutcomeofthenamedexecutiveofficerMerger-relatedcompensationproposalortheAdjournmentProposal,assumingthataquorumexists.However,thevotetoapprovetheMergerProposalisbasedonthetotalnumberofsharesofTechDatacommonstockoutstandingandentitledtovoteasofthecloseofbusinessontherecorddate,notjustthesharesthatarecountedaspresentinpersonorbyproxyattheSpecialMeeting.Asaresult,ifyoufailtoreturnyourproxycardorotherwisevoteyoursharesattheSpecialMeeting,itwillhavethesameeffectasavote“AGAINST”theMergerProposal.
YouwillhavetherighttoreceivetheMergerConsiderationiftheMergerProposalisapprovedandtheMergeriscompletedevenifyoursharesarenotvotedattheSpecialMeeting.
Q. What is a broker non-vote?
A. Brokernon-votesaresharesheldin“streetname”bybanks,brokeragefirmsorothernomineesthatarepresentorrepresentedbyproxyattheSpecialMeeting,butwithrespecttowhichthebank,brokeragefirmorothernomineeisnotinstructedbythebeneficialownerofsuchshareshowtovoteonaparticularproposalandsuchbank,brokeragefirmorothernomineedoesnothavediscretionaryvotingpoweronsuchproposal.Because,underNASDAQrules,banks,brokeragefirmsorothernomineesholdingsharesin“streetname”donothavediscretionaryvotingauthoritywithrespecttoanyofthethreeproposalsdescribedinthisproxystatement,ifabeneficialownerofsharesofTechDatacommonstockheldin“streetname”doesnotgivevotinginstructionstothebank,brokeragefirmorothernominee,thenthoseshareswillnotbecountedaspresentinpersonorbyproxyattheSpecialMeeting.Asaresult,itisexpectedthattherewillnotbeanybrokernon-votesinconnectionwithanyofthethreeproposalsdescribedinthisproxystatement.Thefailuretoissuevotinginstructionstoyourbank,brokeragefirmorothernomineewillhavenoeffectontheoutcomeofthenamedexecutiveofficerMerger-relatedcompensationproposalorAdjournmentProposal,assumingthataquorumexists.However,thevotetoapprovetheMergerProposalisbasedonthetotalnumberofsharesofTechDatacommonstockentitledtovoteontheMergerProposalontherecorddate,notjustthesharesthatarecountedaspresentinpersonorbyproxyattheSpecialMeeting.Asaresult,ifyoufailtoissuevotinginstructionstoyourbank,brokeragefirmorothernominee,thesharesofTechDatacommonstockthatyouownwillnotbecountedforpurposesofdeterminingwhetheraquorumispresentattheSpecialMeetinganditwillhavethesameeffectasavote“AGAINST”theMergerProposal.
Q. Will my shares held in “street name” or another form of record ownership be combined for voting purposes with shares I hold of record?
A. No.Becauseanysharesyoumayholdin“streetname”willbedeemedtobeheldbyadifferentshareholderthananysharesyouholdofrecord,anysharesheldin“streetname”willnotbecombinedforvotingpurposeswithsharesyouholdofrecord.Similarly,ifyouownsharesinvariousregisteredforms,suchas
20
Table of Contents
jointlywithyourspouse,astrusteeofatrustorascustodianforaminor,youwillreceive,andwillneedtosignandreturn,aseparateproxycardforeachofthosesharesbecausetheyareheldinadifferentformofrecordownership.Sharesheldbyacorporationorbusinessentitymustbevotedbyanauthorizedofficeroftheentity.Sharesheldinanindividualretirementaccountmustbevotedundertherulesgoverningtheaccount.
Q. Am I entitled to exercise appraisal rights instead of receiving the per share Merger Consideration for my shares of Tech Data common stock
in connection with the Merger?
A. No.SolongasTechDatacommonstockcontinuestobelistedontheNASDAQ,holdersofTechDatacommonstockdonothaveappraisalrightsundertheFBCAinconnectionwiththeMerger.
Q. What happens if I sell my shares of Tech Data common stock before the completion of the Merger?
A. Inor