Meet the world’s largest IT distributor
Synnex and Tech Data will create the world’s largest IT distributor through their US$7.2 billion merger, coming in nearly US$10 billion larger than Ingram Micro, which had US$47.2 billion in sales in 2019. The companies announced their mega-deal Monday, just months after Tech Data was bought by private equity firm Apollo and Synnex spun out its US$4.7 billion Concentrix customer experience unit.
The deal will accelerate the rapid consolidation in the IT distribution market. Aside from Ingram, the Synnex-Tech Data combination would compete against Synnex Group (which holds a 17 percent stake in US-based Synnex Corporation), Dicker Data, The combined Bluechip/DNA Connect and more specialty players including Arrow, Exclusive Networks, and Westcon/Comstor.
Synnex’s stock was up US$4.95 (4.80 percent) to US$108.08 in trading midday Monday in the US, which is the highest the company’s stock has ever traded since going public in November 2003. From who will lead and control the combined company to its largest vendor partners and geographic footprint to a plan for US$200 million in synergies, here’s a look at five big things partners need to know about the Synnex-Tech Data merger.