Tech Data has decided to merge with its competitor Synnex. The deal is valued at $ 7.2 billion, or more than $ 6 billion.
TI distributor Tech Data was the largest publicly traded company in Tampa Bay before being acquired by private equity firm Apollo Global in 2019. Synnex, in turn, had sales of $ 24.68 billion in 2020 and is a major competitor of Tech Data. The companies have combined annual revenues of $ 57 billion, with more than 22,000 employees, according to a press release.
A bold new path
In an earnings call on Monday, the directors of both companies said the merger was transformative and will bring together the best qualities of the companies to increase financial and geographic strength. Rich Hume, CEO of Tech Data, who will remain and lead the combined company as CEO, said combining the companies accelerates the momentum already achieved.
Synnex President and CEO Dennis Polk will become Executive Chairman of the Board of Directors, including active participation in strategic and integration projects.
Together, the companies’ global presence will span more than 100 countries in Asia, Europe, the Americas and Asia-Pacific.
Who gets what?
Private equity Apollo Global (the owner of Tech Data) will own 45 percent of the combined shares. Synnex will own 55 percent.
Apollo will own a total of 44 million Synnex common shares, in addition to refinancing Tech Data’s existing net debt and redeemable preferred shares for a total consideration of $ 2.7 billion or Euro 2.3 billion.
Matt Nord, Senior Partner at Apollo Global Management, says that when they acquired Tech Data, they saw the potential for growth and the opportunity to create long-term value.
Tip: Apollo Global Offers $ 5 Billion in Tech Data
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