Synnex, Tech Data Agree To Merge In $7.2 Bln Deal

(RTTNews) - Synnex Corp. (SNX) and Tech Data agreed to merge in a transaction valued at about $7.2 billion, including net debt, the companies said in a statement.

In Monday pre-market trade, SNX was trading at $114.30 up $11.10 or 10.76 percent.

The combined company, with about $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.

Tech Data currently is wholly owned by funds managed by affiliates of Apollo Global Management Inc. (APO) and their co-investors.

As per the terms of the agreement, Apollo Funds will receive an aggregate of 44 million shares of Synnex common stock plus the refinancing of existing Tech Data net debt and redeemable preferred shares of about $2.7 billion.

Upon closing of the transaction, Synnex shareholders will own about 55% of the combined entity, with Apollo Funds owning about 45%.

Rich Hume, Tech Data CEO, will lead the combined company as CEO. Dennis Polk, Synnex President and CEO, will be Executive Chair of the Board of Directors 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.

The transaction is expected to close in the second half of calendar year 2021.