Synnex and Tech Data to merge in $7bn deal

Synnex and Tech Data to merge in $7bn deal
Synnex and Tech Data (owners of Maverick AV Solutions) are to merge in a deal worth $7.2 billion.

The combined company is worth approximately $57 billion in annual revenues and has more than 22,000 staff.

Tech Data CEO Rich Hume (pictured above) will lead the combined company as CEO. Synnex president and CEO Dennis Polk will serve as executive chairman and will take an active role in the ongoing strategy and integration of the business, among other responsibilities.

The combined company will have an eleven-member board, including Hume, with six individuals appointed by Synnex and with Apollo Funds to have board designation rights based on ownership, initially including four total directors, two of whom will be independent.

"We are excited to partner with a world-class industry leader like Tech Data and believe that this combination will benefit all our stakeholders," said Dennis Polk, Synnex president and CEO. "This transaction allows for accelerated revenue and earnings growth, an expanded global footprint, and the ability to drive significant operating improvements while continuing to create shareholder value. We look forward to working with the talented colleagues at Tech Data and expect our combined business will create the opportunity for team members to produce the highest levels of service to our partners."

"This is transformational for Tech Data, Synnex and the entire technology ecosystem. Together, we will be able to offer our customers and vendors exceptional reach, efficiency, and expertise, redefining the experience and value they receive," said Rich Hume, Tech Data CEO. "The combined company will also benefit from significant financial strength to invest in its core growth platform as well as next generation cybersecurity, cloud, data, and IoT technologies, which are experiencing explosive growth due to work from home and return to office trends. We could not have reached this milestone without the hard work of our colleagues, and we look forward to working together with the Synnex team to seamlessly bring our companies together and to create meaningful value for all our stakeholders."

Tech Data currently is wholly owned by funds managed by affiliates of Apollo Global Management and co-investors.

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