Synnex Stockholders Give Tech Data Merger OK, But More Hurdles Ahead

The Synnex-Tech Data merger moved a little closer to reality when Synnex’s stockholders this week approved the $7.2 billion distribution mega deal.

Approval by stockholders is a condition of the closing of the Synnex-Tech Data merger. The transaction remains subject to regulatory approvals and customary closing conditions. It should close in the second half of this year.

Dennis Polk is Synnex‘s CEO.

Synnex’s Dennis Polk

“We would like to thank our shareholders for their full support of this merger,” he said. “We look forward to completing the remaining steps to close this transaction.”

The combined company will have about $57 billion in estimated pro forma annual revenues. It addition, it will have more than 22,000 employees.

The combined distribution business will serve businesses in more than 100 countries across the Americas, Europe and Asia Pacific. Moreover, its portfolio will comprise more than 200,000 product offerings.

Tech Data is owned by Apollo Global Management affiliates and its co-investors. Apollo Funds will get an aggregate of 44 million shares of Synnex common stock. It will also get the refinancing of existing Tech Data net debt and redeemable preferred shares of about $2.7 billion.

MSPs had mixed reactions to the planned merger. Some think it’s terrific. Others worry about less choice and potential layoffs.