Synnex and Tech Data, both based in the United States, have entered into a definitive merger agreement, under which the two companies will combine in a transaction valued at about US$7.2 billion, including net debt, MiTAC said.
"The combined company, with approximately US$57 billion in estimated pro forma annual revenues and a team of over 22,000 associates and colleagues, will provide customers and vendors with expansive reach across products, services, and geographies to accelerate technology adoption," said a statement published on the MiTAC website.
The statement said that upon closing of the transaction, Synnex shareholders will own approximately 55 percent of the combined entity, with Apollo Global Management, which bought Tech Data in June 2020, owning about 45 percent.
The transaction is expected to be completed in the second half of 2021, subject to the satisfaction of customary closing conditions, including approval by Synnex stockholders and regulatory approval, the statement said.
Synnex President and CEO Dennis Polk said the company is excited to partner with a world-class industry leader like Tech Data and believes the move will benefit all stakeholders.
"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," Polk said.
Through the merger, Synnex and Tech Data are expected to create the world's largest IT distributor, which could generate US$100 million of optimization and synergy benefits in the first year after closing and about US$200 million by the end of the second year, according to foreign media reports.
"The combined company will have a global footprint that serves more than 100 countries across the Americas, Europe and Asia-Pacific regions, and a broad, diversified portfolio of more than 200,000 product and solutions offerings," Synnex said.
"This meaningful scale will provide increased value and purchasing efficiencies to the combined company's 150,000 customers and more than 1,500 vendors and enable it to accelerate technology adoption and attract the world's most innovative OEMs," said the American company which provides B2B IT services.
