Synnex Corporation and Tech Data have signed a definitive merger agreement valued at approximately $7.2 billion, including net debt.
Following the merger, Synexx and Tech Data, with approximately “$57 billion in estimated pro forma annual revenues and a team of over 22,000 associates and colleagues,” will be better positioned to accelerate technology adoption.
The transaction, which is expected to close in the second half of the current financial year, also combines each company's core growth platforms and end-to-end solutions to create best-in-class product offerings pertaining to the cloud, data centers, security, Internet of Things (IoT), services, 5G, and the intelligent edge.
Additionally, the combined company will expand its global footprint to serve over 100 countries across the Americas, Europe, and Asia-Pacific regions with a diversified portfolio of over 200,000 products and solutions.
“This is transformational for Tech Data, Synexx 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," said Rich Hume, Tech Data CEO.
"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.”
Apollo Global Management, which wholly owns and manages Tech Data through its funds, will also enjoy certain merger benefits.
As per the agreement, Apollo Funds will receive an “aggregate of 44 million shares of Synexx common stock plus the refinancing of existing Tech Data net debt and redeemable preferred shares of approximately $2.7 billion.”
MiTAC Holdings Corporation and its affiliates, which collectively own approximately 17% of Synnex shares, have also agreed to vote their shares in favor of the Synnex-Tech Data merger.
