Synnex, Tech Data Complete Merger: TD Synnex Emerges
Synnex and Tech Data, as expected, completed their merger today. The combined business, led by CEO Rich Hume, is now called TD Synnex. Also, former Synnex CEO Dennis Polk shifts to executive chair of board of directors.
The merger combined two of the world’s largest technology distribution companies. The resulting TD Synnex business now spans 22,000 employees and 150,000 customers in more than 100 countries, the company says. Private equity firm Apollo Global Management owns roughly 45 percent of the company.
Rival Ingram Micro also underwent a recent ownership change. But in that case, Ingram basically gained a new private equity owner that embraced and vowed to accelerate Ingram’s existing business strategy. As a result, Ingram can likely remain customer-focused without turning inward to address business process changes. In contrast, TD Synnex will need to focus inward — at least a bit — to integrate people, business processes, technologies and partner programs.
Moreover, both Tech Data and Ingram must fend off nimble cloud-centric distribution upstarts. Indeed, companies such as Pax8, Sherweb and the ConnectWise Marketplace are striving to gain larger footprints as SaaS-centric storefronts for MSPs and VARs.
TD Synnex: Executive Commentary
Rich Hume, CEO of TD Synnex, commented on the news:
“TD Synnex is uniquely positioned in today’s relentlessly transforming technology ecosystem. As a versatile distributor and solutions aggregator for the IT ecosystem, we’re strengthening our entire portfolio of solutions and raising the bar on the value we deliver to customers and vendors with exceptional reach, efficiency and expertise. It’s an honor to lead TD Synnex with a talented team of 22,000 co-workers worldwide.”
Dennis Polk, TD Synnex executive chair of the board of directors, added:
“We are pleased to have completed the merger and are focused on integrating our businesses. We are energized by the enhanced breadth and depth of our offerings and the opportunities ahead of us to deliver superior value to our stakeholders.”
Additional insights from Joe Panettieri.