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2021: Merge with Tech Data IT Distributor
At the end of March 2021, two leading IT technology distributors Synnex and Tech Data signed a $7.2 billion agreement to merge into one company. It is assumed that the combined company will receive an estimated revenue of about $57 billion.
Synnex and Tech Data act as intermediaries between companies that develop technology products and the retail chains that eventually sell these products to businesses. In addition, IT distributors also offer assistance to resellers in a variety of areas, from marketing materials to accounting.
It is expected that the new combined company with an income of $57 billion will become the world's largest distributor of IT technology in terms of sales, and its catalog will include more than 200,000 offers. In addition, the new company is expected to be more profitable after the merger. Synnex and Tech Data estimate that the share price of the combined firm will rise by 25% a year after the close of the deal.
A partial increase in profitability will be ensured by reducing operating expenses by $100 million in the first year of the combined company. According to Synnex and Tech Data, these savings will increase to at least $200 million for the second year.
The deal is expected to close in the second half of 2021. Synnex shareholders will control approximately 55% of the combined firm, and the rest will be owned by Apollo Global Management, a private investment company owned by Tech Data. The merged firm will be led by Tech Data CEO Rich Hume.
According to Hume, the financial power of the combined company will allow it to "invest in its main growth platform, as well as in next-generation cybersecurity technologies, cloud technologies, big data and the Internet of Things."[1]
2018: Synnex bought Convergys for $2.43 billion
At the end of June 2018, IT distributor Synnex announced the purchase of ITS service provider outsourcing Convergys for $2.43 billion. For the company being sold, they will pay $26.5 per share, which is 4.5% more than the quotation rate by the time the exchange closes on the eve of the announcement of the sale of Convergys. The amount will be paid both from the buyer's own funds and in the form of his ordinary shares. here More.
Notes
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