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SYNNEX Enters Merger Agreement With Tech Data

SYNNEX to Merge With Tech Data

SYNNEX Corporation and Tech Data have entered into a definitive merger agreement. Under this agreement, the two companies will combine in a transaction valued at approximately $7.2 billion, including net debt. The combined company, with approximately $57 billion in estimated pro-forma annual revenues and a team of more than 22,000 associates and colleagues, will provide customers and vendors with reach across products, services and geographies to accelerate technology adoption.

Tech Data is currently wholly owned by funds managed by affiliates of Apollo Global Management, Inc. (Apollo Funds) and its co-investors. Under the terms of the agreement, Apollo Funds will receive an aggregate of 44 million shares of SYNNEX common stock. It will also receive the refinancing of existing Tech Data net debt and redeemable preferred shares of approximately $2.7 billion.

What to Expect From the SYNNEX and Tech Data Merger

Upon closing of the transaction, SYNNEX shareholders will own approximately 55 percent of the combined entity, with Apollo Funds owning approximately 45 percent. The transaction is expected to close during the second half of calendar year 2021. (This remains subject to the satisfaction of customary closing conditions, including approval by SYNNEX stockholders and regulatory approvals.)

MiTAC Holdings Corporation and its affiliates, which collectively owned approximately 17 percent of SYNNEX shares as of January 22, agreed to vote their shares in favor of the transaction. Until the completion of the transaction, both companies will continue to operate independently.

Rich Hume will lead the combined company as CEO. Dennis Polk will be Executive Chair of the Board of Directors and will take an active role in the ongoing strategy and integration of the business. The combined company will have an 11-member board, including Hume. SYNNEX will appoint six other individuals as well. Apollo Funds will have Board designation rights based on ownership, initially including four total directors, two of whom will be independent.

For more details about the SYNNEX and Tech Data merger, click here.

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Sound & Communications: March 2021 Digital Edition
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