A Major Change At The IT Distribution Top
With the merger of Synnex and Tech Data, the IT distribution business has a new leader, at least in terms of size. The combined company has 150,000 customers, 1,500 vendors on its line card and 22,000 employees. Synnex shareholders own 55 percent of the combined company, while private equity company Apollo Global Management—which in June 2020 acquired Tech Data for $5.4 billion—owns 45 percent.
TD Synnex is a worldwide superpower, bringing an expanded global distribution network and extensive OEM relationships to channel partners looking to not only procure the latest hardware, software and services, but also complete offerings for on-premises, public cloud and hybrid cloud deployments.
The new distributor is also expected to have the size to scale investments in developing new solutions and more financing for channel partners looking to bring the latest cloud, next-generation data center, security, Internet of Things, intelligent edge and 5G technologies to customers.
For example, Tech Data had already been investing heavily in its StreamOne cloud platform, while Synnex had been making a big bet on its Stellr platform. Now the two companies can eliminate duplicate efforts, freeing up cash to “accelerate” next-generation technologies moving forward, Rich Hume, now CEO of TD Synnex, told CRN earlier this year.
“Cloud platforms are extremely critical to the future. By us combining, we’ll be able to bring expanded investment into those next-generation technology areas,” he said.
Tech Data’s StreamOne bet came as the distributor was investing $750 million in next-generation technology areas such as cloud, security, analytics, IoT and artificial intelligence.