The historic merger between Synnex and Tech Data is complete creating an entity called TD Synnex with a combined US$59.8 billion in revenue, but in the Asia Pacific and Japan region, the organisation is not quite ready to go all in on the new name.
Locally, the company will not be adopting the TD Synnex brand, at least not yet. For now the company will be known as Tech Data a TD Synnex company. CRN understands that this will be the name the company uses for the time being as it works to complete the rebrand and incorporate a new region.
In addition to the rebrand, the Asia Pacific operations will now incorporate Japan for the first time.
"In Asia Pacific, Tech Data becomes a TD SYNNEX company and now the APAC region includes Japan operations, further expanding our portfolio and reach in the region to serve our regional and local partners better. We look forward to collaborating with our Japanese co-workers, as well as with all new teammates from various markets across the region," the company said in a statement sent to CRN.
This poses a unique problem for the distributor in Australia where Synnex Australia operates a well-established brand and its parent company owns 17 percent of Synnex Corp, with which Tech Data has merged.
Once the name change is complete, this would lead to a situation where TD Synnex would be competing (on a small number of products) with Synnex Australia.
CRN reached out to Tech Data for clarification on how the company intends to differentiate itself from a well established competitor with a similar brand name. The company did not respond by time of publication.
Globally, the distributor now takes over the top spot as the industry’s largest IT distributor, pushing rival Ingram Micro to the No. 2 position for the first time in over three decades.
The US$7.2 billion merger of publicly traded Synnex and private-equity-owned Tech Data, both US-based, which was first unveiled on March 22, marks a new era in the bitterly contested distribution battle for the hearts, minds and pocketbooks of solution providers.
Synnex shareholders own 55 percent of the combined company – which will boast more than 150,000 customers, 1,500 vendors on its line card and 22,000 employees – while private equity company Apollo Global Management owns 45 percent. Apollo in June 2020 acquired Tech Data for US$5.4 billion.
“TD Synnex is uniquely positioned in today’s relentlessly transforming technology ecosystem,” TD Synnex CEO Rich Hume said in a prepared statement.
“As a versatile distributor and solutions aggregator for the IT ecosystem, we’re strengthening our entire portfolio of solutions and raising the bar on the value we deliver to customers and vendors with exceptional reach, efficiency and expertise. It’s an honour to lead TD Synnex with a talented team of 22,000 co-workers worldwide.”
The deal sets the stage for an epic battle between TD SYNNEX and Ingram Micro, the latter of which was acquired by private equity powerhouse Platinum Equity in July.
The closing of the acquisition makes TD Synnex the world’s largest IT distributor by revenue with US$59.8 billion in sales, the companies said in July.
That compares with Ingram Micro, which in April reported fiscal 2020 revenue of US$49.1 billion for the year ended Jan. 2. Prior to the acquisition, Tech Data held the No. 2 spot with US$37.6 billion in revenue, while Synnex was No. 3 at US$22.2 billion, according to the companies.
TD Synnex will be led by former Tech Data CEO Hume, while Synnex President and CEO Dennis Polk will serve as the executive chair of the board of directors.
Steven Burke contributed to this story.