The merger of these two firms (subject to a vote amongst SYNNEX shareholders and regulatory approval) is expected to lead to a combined firm with revenues expected to be well above US$50 billion per annum, while pro forma revenues are expected to be close to US$57 billion. The combined firepower of these two firms is expected to displace Ingram Micro from its market leadership position. The deal is anticipated to be completed in the latter half of this year, subject to customary closing conditions such as Synnex’s stockholders’ approval and regulatory approvals.A merger has taken place to create a new market leader amongst electronic distributors the firms are SYNNEX and Tech Data, who agreed in principle to merge in March 2021. Rich Hume will be the CEO of the combined company. “The combined company will also benefit from significant financial strength to invest in its core growth platform as well as next-generation cybersecurity, cloud, data, and IoT technologies, which are experiencing explosive growth due to work from home and return to office trends.” Tech Data CEO Rich Hume said: “Together, we will be able to offer our customers and vendors exceptional reach, efficiency, and expertise, redefining the experience and value they receive. Post-merger, Synnex’s shareholders will hold nearly 55% stake in the combined entity, while Apollo Funds will own the remaining 45% stake. “We look forward to working with the talented colleagues at Tech Data and expect our combined business will create the opportunity for team members to produce the highest levels of service to our partners.”Īs per the terms of the deal, Apollo Funds will be issued 44 million shares of Synnex along with the refinancing of the existing net debt of Tech Data and redeemable preferred shares of around $2.7bn. Synnex president and CEO Dennis Polk said: “This transaction allows for accelerated revenue and earnings growth, an expanded global footprint, and the ability to drive significant operating improvements while continuing to create shareholder value. It will have a diversified portfolio of over 200,000 product and solutions offerings to cater to 150,000 customers and more than 1,500 vendors. The enlarged firm will serve over 100 countries, spanning the Americas, Europe, and Asia-Pacific regions. It will have a workforce of more than 22,000 people to offer expansive reach to customers and vendors across products, services, and regions to speed up technology adoption. The combination of Synnex and Tech Data will have estimated pro forma annual revenues of around $57bn. Tech Data offers product lines, logistics capabilities, and value-added services to help technology manufacturers and resellers in deploying IT solutions.īased in Florida, the company is fully-owned by funds managed by affiliates of Apollo Global Management and their co-investors. The consideration includes the net debt of Tech Data.īased in California, Synnex provides distribution, systems design, and integration services for the technology industry. Synnex and Tech Data have agreed to merge in a deal valued at nearly $7.2bn to create a major global distributor of IT solutions. Synnex to merge with rival IT solutions provider Tech Data. The combined company will have estimated pro forma annual revenues of nearly $57bn
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