Meet The World’s Largest IT Distributor
Synnex and Tech Data will create the world’s largest IT distributor through their $7.2 billion merger, coming in nearly $10 billion larger than Irvine, Calif.-based Ingram Micro, which had $47.2 billion in sales in 2019. The companies announced their mega-deal Monday, just months after Tech Data was bought by private equity firm Apollo and Synnex spun out its $4.7 billion Concentrix customer experience unit.
The deal will accelerate the rapid consolidation in the North American IT distribution market, which has gone from nine major players as recently as 2016 to just six after this merger closes. Aside from Ingram, the Synnex-Tech Data combination will compete against more specialty players, including Arrow in the data center space, ScanSource in networking and telco, Pax8 in cloud, and D&H for SMB customers.
Synnex’s stock is up $4.95 (4.80 percent) to $108.08 in trading midday Monday, which is the highest the company’s stock has ever traded since going public in November 2003. From who will lead and control the combined company to its largest vendor partners and geographic footprint to a plan for $200 million in synergies, here’s a look at five big things partners need to know about the Synnex-Tech Data merger.
