Synnex-Tech Data Merger Completion Imminent

The highly anticipated Synnex-Tech Data merger has now received all required regulatory approvals. The $7.2 billion distribution mega deal should be complete next week.

Synnex shareholders approved the deal in July.

The combined company will have about $57 billion in annual revenue. In addition, it will have more than 22,000 employees.

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

Rich Hume, Tech Data‘s CEO, will lead the combined company as CEO. Dennis Polk, Synnex president and CEO, will be executive chair of the board of directors.

Synnex-Tech Data Merger to Benefit Customers

Synnex’s Bob Stegner

Back when the Synnex-Tech Data merger was announced, Bob Stegner, Synnex’s senior vice president of marketing for North America, said the merger is going to “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.”

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

Back in March, MSPs had mixed reactions to the planned merger. Some think it’s terrific, while others worry about less choice and potential layoffs.

Synnex also expects its financial results for the third fiscal quarter, ending Aug. 31, to be within the guidance range issued in its June 24 earnings release.

Also this week, 8×8 signed a new distribution agreement with Synnex. The distribution giant’s VAR, MSP and SI partners now get access to 8×8’s Experience Communications as a Service (XCaaS) platform.