Synnex and Tech Data’s $7.2B merger spawns an IT solutions behemoth

Join Transform 2021 for the most important themes in enterprise AI & Data. Learn more.

(Reuters) — IT solutions firm Synnex said on Monday that it will merge with peer Tech Data, owned by funds affiliated to Apollo Global Management, in a deal worth about $7.2 billion, including debt.

Shares of Synnex jumped over 11% in premarket trade.

Apollo Funds will receive 44 million shares of Synnex common stock and the refinancing of existing Tech Data net debt and redeemable preferred shares of about $2.7 billion.

Upon closing of the deal, expected in the second half of 2021, Synnex shareholders will own about 55% of the combined company, while Apollo Funds will own about 45%.

Tech Data was taken private by Apollo Global Management in 2020 in a deal valued at about $6 billion.

Synnex earlier separated into two publicly listed companies, Synnex Technology Solutions and Concentrix.

VentureBeat

  • up-to-date information on the subjects of interest to you
  • our newsletters
  • gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
  • networking features, and more

Source: Read Full Article