Synnex-Tech Data Merger To Be ‘Completed On Or Around Sept. 1’
“It’s pretty amazing how the two companies worked so hard to get this done so quickly,” says LAN Infotech CEO Michael Goldstein. “You have got to really hand it to them for getting it done so fast. I guess they want to start the fourth quarter with a bang. This is definitely going to open up new opportunities for us.”
The historic Synnex-Tech Data merger – which will create the world’s largest IT distributor- is set to be “completed on or around Sept. 1” after Synnex announced Friday it had received all regulatory approvals.
The combination of the two distributors will create a $60 billion behemoth with more than 150,000 customers and 22,000 employees.
The blockbuster deal sets the stage for an epic battle between the combined Synnex -Tech Data and Ingram Micro- which for the first time in at least three decades - will be surpassed as the No. 1 IT distributor.
Synnex/Tech Data will have combined revenue of $60 billion, coming in nearly $11 billion larger than Irvine, Calif.-based Ingram Micro, which had $49.1 billion in sales in fiscal year 2020.
The $7.2 billion merger of publicly traded Synnex and private equity owned Tech Data – which was first unveiled on March 22- will be 55 percent owned by Synnex shareholders and 45 percent owned by Apollo Global management, which bought Tech Data for $5.4 billion in June 2020.
Michael Goldstein, president and CEO of LAN Infotech, a fast-growing MSP based in Fort Lauderdale, Fla, credited Synnex and Tech Data for working swiftly to get the deal done.
“It’s pretty amazing how the two companies worked so hard to get this done so quickly,” he said. “You have got to really hand it to them for getting it done so fast. I guess they want to start the fourth quarter with a bang.”
Goldstein said he is looking to working with his Tech Data-Synnex rep to understand the benefits of the deal. “This is definitely going to open up new opportunities for us,” he said. “Tech Data-Synnex is now the No. 1 distributor. It is going to be up to them to show partners the true power of this deal with what we hope will be better margins, unique programs, increased credit and better supply. It is going to be interesting to see how this merger changes the distribution landscape.”
Bob Venero, CEO of Holbrook, N.Y.-based solution provider Future Tech Enterprise, No. 100 on the 2021 CRN Solution Provider 500, said he is looking forward to seeing the impact the combined Synnex Tech Data will have on partners under the leadership of Tech Data CEO Rich Hume, who will head up the combined organization
“Rich Hume is one of the best executives in the business,” said Venero. “I am sure Tech Data-Synnex will pull a together a compelling channel story against Ingram and all other distributors. Rich didn’t make this decision to lose market share and alienate the channel. He made this decision to help grow the organization and do a better job for the channel community.”