Synnex-Tech Data Merger: 5 Things to Know About Technology Distribution M&A

1. More than 150,000 customers (mostly channel partners) and 1,500 vendors across more than 100 countries in the Americas, Europe and Asia-Pacific regions.
2. Upon closing of the deal, Synnex shareholders will own approximately 55 percent of the combined entity, with Apollo Funds owning approximately 45 percent.
3. Tech Data CEO Rich Hume will lead the combined company as CEO. Dennis Polk will be Executive chair of the board of directors and will "take an active role in the ongoing strategy and integration of the business, among other responsibilities," the announcement says.
4. Net optimization and "synergy benefits of $100 million are expected in the first year after closing, achieving a minimum of $200 million by the end of the second year." The announcement didn't mention whether the expected synergy involves potential layoffs.
5. The deal is expected to close in the second half of calendar year 2021, subject to Synnex stockholders and regulatory approvals.

"We are excited to partner with a world-class industry leader like Tech Data and believe that this combination will benefit all our stakeholders. 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. 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."

"This is transformational for Tech Data, SYNNEX and the entire technology ecosystem. Together, we will be able to offer our customers and vendors exceptional reach, efficiency, and expertise, redefining the experience and value they receive. 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. We could not have reached this milestone without the hard work of our colleagues, and we look forward to working together with the SYNNEX team to seamlessly bring our companies together and to create meaningful value for all our stakeholders."

"When we acquired Tech Data, we saw the tremendous potential for transformative growth and long-term value creation.  This transaction will accelerate the momentum that was already underway by uniting two outstanding companies for greater scale and financial strength to lead the industry. We are excited to remain a part of the new company's continued success."

1. Win together.
2. Transform the IT customer experience across the entire lifecycle.
3. Deliver more solutions and more deeply engage the company’s global partner communities.