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It’s Official: Synnex-Tech Data Is TD Synnex, The Industry’s Largest IT Distributor

Synnex and Tech Data have officially merged to create a $59.8 billion entity called TD Synnex, knocking Ingram Micro out of the top spot as the industry’s largest IT distributor for the first time in 30-plus years and opening the door for the new company to woo its rival’s partners.

The historic merger between Synnex and Tech Data is complete, the companies said Wednesday, creating an entity called TD Synnex with a combined $59.8 billion in revenue that takes over the top spot as the industry’s largest IT distributor, pushing rival Ingram Micro to the No. 2 position for the first time in over three decades.

The $7.2 billion merger of publicly traded Synnex, Fremont, Calif., and private-equity-owned Tech Data, Clearwater, Fla., which was first unveiled on March 22, marks a new era in the bitterly contested distribution battle for the hearts, minds and pocketbooks of solution providers.

Synnex shareholders own 55 percent of the combined company—which will boast more than 150,000 customers, 1,500 vendors on its line card and 22,000 employees—while private equity company Apollo Global Management owns 45 percent. Apollo in June 2020 acquired Tech Data for $5.4 billion.

“TD Synnex is uniquely positioned in today’s relentlessly transforming technology ecosystem,” said Rich Hume (pictured), TD Synnex CEO, in a prepared statement. “As a versatile distributor and solutions aggregator for the IT ecosystem, we’re strengthening our entire portfolio of solutions and raising the bar on the value we deliver to customers and vendors with exceptional reach, efficiency and expertise. It’s an honor to lead TD Synnex with a talented team of 22,000 co-workers worldwide.”

[Related: Synnex’s Michael Urban: 5 Bold Statements On The Synnex-Tech Data Merger]

The blockbuster deal sets the stage for an epic battle between TD SYNNEX and Ingram Micro, the latter of which was acquired by private equity powerhouse Platinum Equity in July.

The closing of the acquisition makes TD Synnex the world’s largest IT distributor by revenue with $59.8 billion in sales, the companies said in July. That compares with Ingram Micro, which in April reported fiscal 2020 revenue of $49.1 billion for the year ended Jan. 2. Prior to the acquisition, Tech Data held the No. 2 spot with $37.6 billion in revenue, while Synnex was No. 3 at $22.2 billion, according to the companies.

TD Synnex will be led by former Tech Data CEO Hume, while Synnex President and CEO Dennis Polk will serve as the executive chair of the board of directors..

It is an exciting time to be a Tech Data or Synnex channel partner, said John Kolimago, executive vice president and general manager of Anexinet, a Bluebell, Pa.-based solution provider and MSP and a longtime Tech Data partner.

Kolimago’s optimism over the merger stems from his experience when he was an Avnet Technology Solutions partner at the time Tech Data acquired the Avnet Technology Solutions business unit in early 2017, he told CRN.

“We were originally concerned, but it turned out to be a beautiful thing,” he said. “That acquisition expanded our solutions, support for our customers, financing support, and interactions with the field teams. They bent over backwards to help us through the change. Now there’s less fear than in the past because we know what to expect, including the increased investment needed to make the deal work.”

TD Synnex will have other benefits as well for Anexinet, Kolimago said.

“Last year, we acquired SereneIT, which had a long-standing Synnex relationship,” he said. “The fact that these two are coming together is music to our ears. And two weeks ago we acquired Light Networks, which is also a Tech Data partner. We grow through these consolidations, and we’re seeing our distributors doing the same.”

Going forward, Kolimago said he expects he can count on continued access to Tech Data’s leadership teams.

“I know that they want to help us grow, which will help them grow,” he said.

Joel Anacker, owner of Javis Industries, a Madison, Wis.-based solution provider with a 10-plus-year Synnex relationship in addition to partnerships with Ingram Micro and D&H Distributing, told CRN he expects the merger to help his distribution relationship.

“This year, one of my biggest challenges is supply issues,” Anacker said. “All of a sudden, there are no monitors, or no laptops, or no whatever product of the day. The merger will mean my distributor has a bigger network and more locations stocking whatever we need for customers.”

However, with any merger, there is always uncertainty, Anacker said.

“The one thing we like most about Synnex is that its teams are more responsive,” Anacker said. “Ingram Micro and D&H are great organizations, but we’ve had the best luck with Synnex with bringing things together for large projects, so we do worry about any changes in support. Like everyone, we’re dependent on our distributor.”

Some solution providers that currently work largely with Ingram Micro are open to hearing what TD Synnex can do for them.

Mike Hadley, CEO of iCorps Technologies, Woburn, Mass., said now that Tech Data and Synnex have officially combined to form a distribution behemoth, he is ready to see what the new company can do to win some of his company’s business.

“We are looking forward to seeing what the new Tech Data-Synnex can bring to us,” said Hadley, whose primary distributor is Ingram Micro. “The key for us will be access to inventory, pricing and communications. The ability to have a strong account manager who can get on the phone is important too. It’s a partnership.”

If TD Synnex gets it right, the deal could lead to a seismic shift in the distribution landscape, Hadley told CRN.

“To me it is a big change if it really helps out MSPs with pricing, inventory and strong support,” he said. “It doesn’t mean anything if it doesn’t do that. They are going to have to make it a better experience for me and the channel in order for me to move business to them.”

Hadley is not alone. Other partners are also looking for the new TD Synnex to show them the money.

“We do 95 percent of our purchasing through Ingram Micro,” said the CEO for a top MSP, who did not want to be identified. “It’s pretty simple from my side: It’s all about margin. If being bigger allows them to have more market share and work vendor relationships better, and it changes the margin on products and services, it could be a big differentiator. My question is, what is going to be different versus the competition?”

Steven Burke contributed to this story.

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