Synnex becomes Fortune 100 company through merger

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Synnex's Greenville location will remain in place during the new merger and may even become the center of the new company's operating network.  (Photo provided)Synnex Corp. and Tech Data, a Fortune 500 company based in Clearwater, Florida, today agreed to merge in a transaction valued at approximately $7.2 billion, including net debt.

And to allay any concerns that the combined company, still named Synnex, will leave town, Bob Stegner, Synnex’s senior vice president of North American marketing, said the technology distribution company has no intention of going anywhere. He said no.

In fact, he said the combined company could one day be headquartered in Clearwater, Fla., and move Synnex’s Fremont, Calif., headquarters to Greenville.

“Greenville is too important to Synnex,” he said. “Just look at the philanthropic work that we do there. For example, ‘Share the Magic,’ but frankly, from a personal perspective, we want all this money to go to the children of Unity Park.” donated to a new playground for I’d like to see it built. ”

The news came as Synnex Corp. announced that its revenue was up ~20% higher than last year.

“This also makes us the largest IT distributor with projected revenues of up to $57 billion, which is great for Greenville,” Stegner said. “There are a lot of Fortune 500 companies out there. This could make us a Fortune 100 company.”

Synnex Corp. is currently a Fortune 200 company, while Tech Data ranks No. 90 on the Fortune 500 list, according to a news release.

Dennis Polk, Synnex’s current CEO, will transition to his role as executive chairman of the board while continuing to lead the new company’s ongoing strategy and integration, according to the release. That’s what it means. Tech Data’s Rich Hume will remain CEO of the new company.

“We are excited to partner with a world-class industry leader like Tech Data and believe this combination will benefit all stakeholders,” Polk said in a news release. “This transaction accelerates revenue and profit growth, expands our global footprint, and enables us to drive significant operational improvements while continuing to create shareholder value. I look forward to working with talented colleagues and our combined business is an opportunity for our team members to provide the highest level of service to our partners.”

Synnex has made numerous donations to charities and projects in the Greenville area, including a new playground at Unity Park.  (rendering/provided)Tech Data, a privately held company, will also continue to operate in Clearwater, Florida, and its owners, affiliates of Apollo Global Management Inc. and their co-investors, will purchase 44 million shares of Synnex common stock to refinance existing Tech Data. The company plans to acquire shares. Data net debt and redeemable preferred stock is approximately $2.7 billion, according to a news release.

Upon completion of the transaction, Synnex shareholders will own approximately 55% of the combined entity and Apollo Funds will own approximately 45%.

“Together, we will be able to provide our customers and vendors with unparalleled reach, efficiency and expertise, redefining the experience and value they receive,” Hume said in the release. I mentioned it inside. The company’s core growth platforms and next-generation cybersecurity, cloud, data, and IoT technologies are experiencing explosive growth due to the work-from-home and return-to-office trends.

If the deal closes within six to nine months, the combined team will include more than 22,000 employees and partners, Stegner said. He expects to generate $100 million in net optimization and synergies in the first year after the transaction closes, which is expected to reach a minimum of $200 million by the end of the second year.

Stegner said there is little overlap between the two companies, both geographically and in terms of product offerings, which will enhance synergies during the merger.

“For example, we are in Japan. They are not,” he said. “They’re in Europe. That wasn’t the case. There’s not a lot of overlap for customers in the U.S. and Canada.”

Tech Data also brings Apple and IBM products to the Synnex group.

“And there are a lot of vendors that we don’t deal with,” Stegner said. “This blend is going to be great.”

According to a news release, Synnex and TechData expect the merger to expand their customer networks and create a global presence spanning more than 100 countries in the Americas, Europe, Asia and the Pacific region. The combined company will ultimately offer more than 200,000 products and solutions to customers.

“The irony is that we remain fierce competitors over the next six months until we close,” he said.

The combined company will have an 11-member board of directors, including Mr. Hume, six of whom were appointed by Synnex and Apollo Funds with ownership-based board nominations, for an initial total of four directors. Two of them plan to become independent.

Matt Nord, Senior Partner and Co-Head of Private Equity, and Partner Robert Carussou Ramos, Apollo Global Management “I realized the great potential of creation.” “This transaction will accelerate the momentum already underway by combining two outstanding companies to deliver greater scale and financial strength to lead the industry. is excited to continue to be a part of the new company’s continued success.”

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