Technology distributors Synnex and Tech Data are merging in deal valued at about $7.2 billion including net debt to create a company with $57 billion in annual revenue with 22,000 employees.
The combination of two companies will expand the geographic and product reach into cybersecurity, cloud, data and Internet of things. Synnex is publicly traded on the New York Stock Exchange and Tech Data is privately held and owned by Apollo Global Management.
Once the deal is complete, the combined company will offer more than 200,000 products in more than 100 countries. The scale will improve efficiency and partnerships with vendors.
According to Synnex and Tech Data, the combination will also be better able to tackle growth markets such as IoT, 5G, cloud and edge computing as well as everything-as-a-service extensions.
Here are the financial details:
Here's a look at the end markets and technology stacks Synnex and Tech Data will target.
Of those markets, Synnex and Tech Data see the most opportunity in analytics and artificial intelligence, next-gen data centers, cloud, security, IoT, 5G and third-party platform services.
Separately, Synnex reported fiscal first quarter earnings of $1.69 a share ($1.89 a share non-GAAP) on revenue of $4.94 billion, up 21% from a year ago. Polk said that Synnex is "encouraged by the IT spending environment so far in 2021" due to digital transformation projects and remote work investments.