Synnex-Tech’s Huge Data Distribution Merger Imminent
Find out when it should be final.
The highly anticipated Synnex-Tech Data merger has now received all required regulatory approvals. The $ 7.2 billion mega distribution deal is expected to be finalized next week.
Synnex shareholders approved the transaction in July.
The combined company will have annual sales of approximately $ 57 billion. In addition, it will have more than 22,000 employees.
The combined distribution business will serve businesses in more than 100 countries across the Americas, Europe and Asia-Pacific. In addition, its portfolio will include more than 200,000 product offerings.
Rich Hume, CEO of Tech Data, will lead the combined company as CEO. Dennis Polk, President and CEO of Synnex, will be the executive chairman of the board.
Synnex-Tech data merger for the benefit of customers
At the time the Synnex-Tech Data merger was announced, Bob Stegner, Synnex senior vice president of marketing for North America, said the merger will “make it easier for customers to do business because Tech Data has made it easier for customers to do business. some supplier lines that we don’t have and vice versa. So this will allow them to make one-stop shopping for a total solution. And between the two companies, we should have all the suppliers they need. “
Tech Data is owned by subsidiaries of Apollo Global Management and its co-investors. Apollo Funds will obtain 44 million Synnex shares. It will also obtain refinancing of existing Tech Data debt and redeemable preferred shares of approximately $ 2.7 billion.
In March, MSPs had mixed reactions to the proposed merger. Some think it’s great, while others worry about fewer choices and potential layoffs.
Synnex also expects its financial results for the third fiscal quarter, ending August 31, to be within the range of forecasts published in its June 24 earnings release.
Also this week, 8 × 8 signed a new distribution agreement with Synnex. The retail giant’s VAR, MSP and SI partners now have access to the 8 × 8 Experience Communications as a Service (XCaaS) platform.