Distributor giants Synnex and Tech Data have joined forces to create an even bigger beast valued at roughly $57 billion.
According to Synnex president and chief executive officer Dennis Polk, Rich Hume, CEO of Tech Data will be the CEO of the combined company.
“As with all our prior M&A transactions, we have looked for a partner that is the right fit for our company, and we believe that the combination with Tech Data is compelling for several reasons,” Polk said in a March 22 email statement to customers. “First, we will be able to accelerate our growth trajectory beyond what we could have done by making several smaller acquisitions over a longer time. Second, given the complementary geographic footprints between us and Tech Data, we immediately gain a truly global presence with which to better serve you when your customers are local, regional, or worldwide.”
The third outcome from the merger is a vastly expanded portfolio of products, he added. Together, the new company also boasts more than 150,000 customers and 1,500 vendor partners. The proposed $7.2 billion merger of the publically traded Synnex and the private equity-owned Tech Data will see 55 per cent of it owned by Synnex shareholders and 45 per cent owned by Apollo Global management. Apollo bought Tech Data for $5.4 billion in June 2020.
Until the merger closes, the two companies will remain separate. In his emailed statement, Polk told customers to expect things to be “business as usual.” The deal is expected to close in the second half of 2021.