Net optimization and synergy benefits of $100 million are expected in the first year achieving a minimum of $200 million by the end of the second year. Synnex expects EPS accretion of over 25% in year one, with further accretion expected in year two. In these roles, Rowan and Clayton succeeded Apollo Founder Leon Black. Private equity firm Apollo Global Management will own roughly 45 percent of the combined business which blends traditional technology distribution with cloud marketplaces for channel partners. One of the strengths of SNX is its improving skin on IT trends, thanks to its meaningful merger with Tech Data. Former SEC Chairman and Apollo's lead independent director Jay Clayton became the Non-Executive Chairman of the board. Synnex and Tech Data expect to close their 7.2 billion distribution merger on or about September 1, Synnex says. (SNX) and Tech Data agreed to merge in a transaction valued at about 7.2 billion, including net debt, the companies said in a statement.In Monday pre-market trade, SNX. Why It Matters: Apollo co-founder Marc Rowan became the CEO of Apollo as part of a planned succession process first announced in January 2021. March 22 (Reuters) - IT solutions firm Synnex Corp said on Monday it will merge with peer Tech Data in a deal worth about 7.2 billion, including debt, creating one of the world's. Dennis Polk would be the Executive Chair of the board. Rich Hume would lead the combined company as CEO. Indeed, Tech Data’s 2.6 billion deal with Avnet, it’s acquisition last year by private equity investor Apollo Global Management for roughly 6 billion, Ingram’s own 7.2 billion acquisition by Platinum Equity, and the also 7.2 billion Tech Data/SYNNEX merger announced this week all suggest that distribution in general is on a roll. Synnex shareholders would own 55% of the combined company, while Apollo Funds will own the remaining 45% under the deal. The combined company would also benefit from significant financial strength to invest in its core growth platform, next-generation cybersecurity, cloud, data, and IoT technologies, which experienced explosive growth due to work from home and return to office trends per Tech Data CEO Rich Hume.Īpollo Funds would receive 44 million shares of Synnex, refinancing of existing Tech Data net debt, and redeemable preferred shares of $2.7 billion under the arrangement. TD SYNNEX has acquired in 7 different US states, and 5 countries. "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," said Synnex CEO Dennis Polk. TD SYNNEXs largest acquisition to date was in 2021, when it acquired Tech Data for 7.2B. ![]() What Happened: The combined company, with $57 billion in estimated pro forma annual revenues, would provide customers and vendors with expansive reach across products, services, and geographies to fast-track technology adoption. With more than 22,000 employees, the combined company will operate in more than 100 countries.IT solutions firm Synnex Corp (NYSE: SNX) and IT distribution company Tech Data, owned by funds affiliated to Apollo Global Management Inc (NYSE: APO), inked a merger agreement to combine under a $7.2 billion deal. ![]() Tech Data approached Synnex late last year following Synnex's spinoff of its customer experience division Concentrix Corporation, according to a source familiar with the situation. The company, created through a summer merger between Largo’s Tech Data and Fremont, Calif.’s Synnex Corp, estimated Tuesday that it would see revenues of between 15 billion and 16 billion in. ![]() Synnex shareholders will own about 55% of the combined company, which expects to generate $57 billion in estimated annual revenue, while Apollo will own the rest and take four board seats after the deal closes in the second half of 2021.Īpollo 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 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 and Tech Data benefited from the pandemic-driven acceleration in digital transformation as more people worked from home. The deal, originally valued at 7.2 billion, has jumped to 8 billion with the new stock price of SNX.The companys stock price as of July 7 is roughly 118 a share.
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