Tech Data and Synnex are to merge in a $7.2 billion deal that would make them larger than Ingram Micro.
It will mean the end of the days of Tech Data being behind Ingram together, Tech Data and Synnex will boast Pro-forma annual revenues of around $57 billion and a head count of more than 22,000.
Tech Data CEO Richard Hume will become CEO of the new company.
He said: “This is transformational for Tech Data, Synnex and the entire technology ecosystem. Together, we will be able to offer our customers and vendors exceptional reach, efficiency, and expertise, redefining the experience and value they receive. The combined company will also benefit from significant financial strength to invest in its core growth platform as well as next-generation cybersecurity, cloud, data, and IoT technologies, which are experiencing explosive growth due to work from home and return to office trends.”
Synnex president and CEO Dennis Polk – who will be executive chair of the combined company – claimed the transaction will spark “accelerated revenue and earnings growth”.
US focused Synnex turned over $24.7 billion in its fiscal 2020, with $20 billion coming from technology solutions and $4.7 billion from its recently spun off Concentrix arm.
With Tech Data added into the mix, the combined company will serve 100 countries, 150,000 customers and more than 1,500 vendors.
The transaction is expected to close in the second half of calendar year 2021.
