22,000 employees, 150,000 customers, $57 billion in annual revenue… This will weigh the entity created by the merger of Tech Data and Synnex. The two wholesalers have announced their intention to join forces to create an IT distribution giant. Under the terms of the deal, Synnex shareholders will own 55% of the new company, valued at $7.2 billion (including debt). The rest will be held by the Apollo investment fund, which Tech Data bought in June 2020.
Current Tech Data CEO Rich Hume will lead the new company (the name of which has not yet been released). Dennis Polk will take over at the helm of Synnex as Chairman of the Board.
The specialized website CRN reports that the operation puts pressure on the current leader of the IT distribution sector, Ingram Micro, which will be relegated to second place with an annual turnover of $47.2 billion (in 2019). Ingram Micro Acquires Platinum Equityan American private equity firm.
“This is a game changer for Tech Data, Synnex and the entire technology ecosystem,” said CEO Rich Hume. Who adds that the combined company will benefit from significant financial strength to invest in particular in cybersecurity, cloud, data and the Internet of Things, technologies that are experiencing explosive growth due to the boom in working from home and the phenomenon of returning to the office.