This will make us a Fortune 100 company.” “There are a lot of Fortune 500 companies in there. “It will also make us the largest IT distributor, with projected revenues of up to $57 billion, which is great for Greenville,” Stegner said. ![]() announced that its earnings added up to 20% more than last year. For example, “Share the Magic,” and quite frankly, from a personal standpoint, we donated all this money to a new playground for the kids at Unity Park. “You can just look at just the charity work we do there. “Greenville’s just too important to Synnex,” he said. In fact, he said that the combined company may one day have a corporate office in Clearwater, Fla., and potentially move Synnex Corp.’s Fremont, Calif., headquarters to Greenville. and Tech Data, a Clearwater, Fla.-based Fortune 500 company, agreed to merge today in a transaction valued at approximately $7.2 billion including net debt.Īnd to assuage all fears that the combined company, still named Synnex, is leaving town, Bob Stegner, Synnex’s senior vice president of marketing in North America, said the tech distribution company isn’t going anywhere. Between them, the two companies work with more than 1,500 suppliers and original equipment manufacturers.Synnex Corp. Synnex and Tech Data drive large amounts of business for the IT suppliers whose products they distribute. The merger is significant not only for resellers, system integrators and the enterprises that rely on them but also the IT industry’s top technology firms. The company will “benefit from significant financial strength to invest in its core growth platform as well as next generation cybersecurity, cloud, data, and IoT technologies,” Hume said in a statement today. The combined firm will be led by Tech Data Chief Executive Rich Hume. Afterwards, Synnex shareholders will control approximately 55% of the combined firm and the rest will be owned by private equity firm Apollo Global Management, the owner of Tech Data. The deal is set to close in the second half of this year. Those savings will grow to at least $200 million in the second year after the transaction’s completion, Synnex and Tech Data’s projections indicate. Part of the profitability increase is set to come from $100 million in operating cost reductions that the combined firm is projected to realize in its first year. According to estimates from Synnex and Tech Data, the combined firm will log a 25% accretion in its adjusted diluted earnings per share a year after the deal’s closing. Moreover, it’s expected to be more profitable. With its expected $57 billion in revenues, the new company that will emerge from the merger is expected to be the world’s largest IT distributor by sales and will have a solution catalog of more than 200,000 offerings. ![]() The IT distribution channel is big business: Synnex and Tech Data are both members of the Fortune 500. partners services such as billing assistance along with technical resources they can use in client projects. Tech Data, for instance, offers Amazon Web Services Inc. Synnex and Tech Data both have alliances with the major infrastructure-as-a-service providers that they use to provide various cloud-specific offerings. IT distributors have maintained their key role in the supply chain with the emergence of the public cloud. ![]() Besides providing resellers and system integrators with access to suppliers’ latest offerings, IT distributors also offer them assistance in areas ranging from preparing marketing materials to accounting. They act as intermediaries between companies that develop technology products and the resellers and system integrators that ultimately sell those technology products to enterprises. Synnex and Tech Data’s combined pro forma profits, in turn, will amount to approximately $1.5 billion on an adjusted basis not including interest, taxes, depreciation and amortization.Īs two of the industry’s largest IT distributors, Synnex and Tech Data play a central role in the enterprise technology supply chain. The combined firm is expected to have pro forma revenues of about $57 billion. and Tech Data Corp., two top distributors of information technology products, today announced that they’ve inked a $7.2 billion agreement to merge into a single company.
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