“For SYNNEX this combination accelerates our strategic growth initiatives by multiple years,” said Polk. In a conference call will industry analysts, Polk said the merger would enable SYNNEX to achieve its strategic goal faster than it would otherwise by rolling up a number of smaller distributors. As such, the overlap between the two distributors is not at extensive as might be expected. Operating income was $142 million in the first quarter, compared to $100 million a year ago.Īs part of a deliberate strategy, SYNNEX has tended to limit the size of its vendor line card compared to Tech Data. SYNNEX today also reported its first quarter revenue are $4.9 billion, a 21% increase from a year ago at the start of the pandemic. Demos, NFRS, MDF, Promotions, Partner Leveling… they have over 20 specific solutions to help you get the most out of your partner ecosystem. If so, check out Channel Mechanics, they offer a complete line of SaaS solutions to manage all aspects of your channel. That combined company will have pro forma revenues of approximately $57 billion with more than 22,000 employees that support 200,000 products and solutions.Īre you struggling to execute the mechanics of your channel strategy? SYNNEX president and CEO Dennis Polk will become Executive Chair of the board of directors of the new entity, while Tech Data CEO Rich Hume will lead the combined company as CEO. Upon closing of the transaction, SYNNEX shareholders will own approximately 55% of the combined entity, with Apollo Funds owning approximately 45%. Under the terms of the agreement, Apollo Funds will receive an aggregate of 44 million shares of SYNNEX common stock plus the refinancing of existing Tech Data net debt and redeemable preferred shares valued at approximately $2.7 billion. Tech Data is currently owned by Apollo Funds, a venture capital firm that acquired the distributor in 2019 for $6 billion. Scheduled to be closed later this year, the merger of two of the largest IT distributors in the world impacts not just IT vendors that rely on distribution partners to manage relationships with channel partners but also channel partners that rely on multiple distributors to finance deals. Dennis Polk, Synnex President and CEO, will be Executive Chair of the Board of Directors and will take an active role in the ongoing strategy and integration of the business, among other responsibilities.A blockbuster $7.2 billion merger of Tech Data and SYNNEX announced today will send significant shockwaves across the channel. Rich Hume, Tech Data CEO, will lead the combined company as CEO. Upon closing of the transaction, Synnex shareholders will own about 55% of the combined entity, with Apollo Funds owning about 45%. (APO) and their co-investors.Īs per the terms of the agreement, Apollo Funds will receive an aggregate of 44 million shares of Synnex common stock plus the refinancing of existing Tech Data net debt and redeemable preferred shares of about $2.7 billion. Tech Data currently is wholly owned by funds managed by affiliates of Apollo Global Management Inc. The combined company, with about $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.
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