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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.
Strong Financials
Synnex, for the 12-month period ended May 31, 2020, generated revenue of $22.2 billion, gross profit of $1.3 billion, EBITDA of $720 million and adjusted margin of 3.2 percent. For Tech Data’s 12-month period ended April 30, 2021, revenue was $37.6 billion, gross profit was $2.2 billion, adjusted EBITDA was $887 million and margin was 2.4 percent.
Combined, the TD Synnex organization would have shown total revenue of $59.8 billion, gross profit of $3.5 billion, adjusted EBITDA of $1.6 billion and margin of 2.7 percent.
The two companies expect to see estimated net annual cost synergies of $100 million after the merger.
