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Done Deal: 5 Things To Know About The New TD Synnex
Joseph F. Kovar
As of Sept. 1, Synnex and Tech Data have merged to form the world’s largest IT distributor as the rebranded TD Synnex, surpassing 30-plus-year market leader Ingram Micro by revenue. Here are some keys to understanding the importance of this merger to solution providers and investors alike.
Understanding The New TD Synnex
Synnex and Tech Data Wednesday completed their merger and the new TD Synnex is now the largest IT distributor with combined revenue of $59.8 billion. That merger means the two combined take over the No. 1 position that has been held by rival Ingram Micro for 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, setting the stage for an epic face-off between TD Synnex and Ingram Micro.
“We are looking forward to seeing what the new Tech Data-Synnex can bring to us,” said Michael Hadley, CEO of iCorps, Technologies, Woburn, Mass., 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.”
Here are five things key to understanding the new distribution leader.