Breaking Down the Tech Data-Synnex Merger, Market Impact

This week started off with a massive channel shake-up. The planned Tech Data–Synnex merger creates the world’s largest distributor, as the latter buys the former for $7.2 billion.

The combined company will be a $57 billion distribution giant, leaving $40 billion Ingram Micro in the dust. It will serve businesses in more than 100 countries across the Americas, Europe and Asia Pacific. Additionally, its portfolio will comprise more than 200,000 product offerings.

Apollo Global Management affiliates and its co-investors now own Tech Data. The massive transaction should close in the second half of the year.

Rich Hume is Tech Data’s CEO.

“The combined company will deliver superior value for shareholders, offer our customers and vendors exceptional reach, efficiency and expertise across the entire technology ecosystem, and be an employer of choice in the IT industry,” he said.

Bob Stegner, Synnex’s senior vice president of marketing for North America, gave us the lowdown on the Tech Data-Synnex merger and what it will mean for the evolving distribution market.

Channel Futures: What will this merger mean for Synnex partners and what do they need to know about it?

Bob Stegner: The thing they need to realize is that for the next six to nine months, it doesn’t mean anything, because we can’t do anything until the deal closes and we anticipate it closing at the end of, maybe  the latter part of this year. But we don’t know that for sure. We don’t anticipate any issues. When it does close, I think it’s going to really make it easier for the customers to do business because Tech Data has some vendor lines that we don’t have and vice versa. So that’s going to allow them to do one-stop shopping for a total solution. And between the two companies, we should have all the vendors that they need.

It’s probably going to change their credit lines for the positive, because there’s only one company they’re dealing with. And as far as what they need to know, there’s not much — not until it’s done. That’s the most difficult part. But I do think it’s going to be a good thing for customers because it is the geographic regions. An ideal example is we’re in Japan and they’re not. They’re in Europe; we’re not. So there are a lot of synergies there from a geographic standpoint.

It’s really going to make the customer a lot easier to be able to do business with.

Our slideshow above has more of Stegner’s thoughts, as well as more facts about this monster merger.