Synnex Corp. Strikes $7.2B Merger Deal With Tech Data

The combined firm will be 55% owned by Synnex shareholders and 45% owned by Apollo Global, which bought Tech Data for $5.4 billion in 2020.

FREMONT, Calif. — IT solutions firm SYNNEX Corp. (NYSE: SNX) and its private equity-backed competitor Tech Data have entered into a definitive merger agreement in a deal worth about $7.2 billion, including debt, creating one of the world’s biggest IT distribution companies.

The merger comes less than a year after Apollo Global Management took Tech Data private in a $6 billion deal, at a time when both Synnex, based here, and Tech Data benefited from the coronavirus pandemic-driven acceleration in digital transformation as more people worked from home.

The combined company, with approximately $57 billion in estimated pro forma annual revenues and a team of over 22,000 associates and colleagues, will provide customers and vendors with expansive reach across products, services, and geographies to accelerate technology adoption, according to an announcement.

“When we acquired Tech Data, we saw the tremendous potential for transformative growth and long-term value creation,” states Apollo Partner Robert Kalsow-Ramos said. “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.”

The proposed merger will be led by Tech Data CEO Rich Hume, with Synnex President and CEO Dennis Polk serving as executive chair of the company’s board.

Under terms of the agreement Synnex shareholders will own about 55% of the combined company, while Apollo will own the rest and take four board seats after the deal closes in the second half of 2021.

Apollo will receive 44 million shares of Synnex common stock, and the refinancing of existing Tech Data net debt and redeemable preferred shares of about $2.7 billion.

The combined company will support more than 1,500 vendors and OEMs and serve customers in more than 100 countries across the Americas, Europe and Asia-Pacific regions. Prior to the deal, Clearwater, Fla.-based Tech Data had a global presence — including a particularly large footprint in Europe — while Synnex was focused on North America and Japan.

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