SYNNEX merging with Apollo's Tech Data in deal valued at $7.2B

Mar. 22, 2021 8:14 AM ETTD SYNNEX Corporation (SNX)SNX, APOBy: Brandy Betz, SA News Editor1 Comment
  • SYNNEX Corporation (NYSE:SNX) and Tech Data have entered into a definitive merger agreement valued at approximately $7.2B, including net debt. The transaction is expected to close in the second half of this year.
  • The combined company will have an estimated $57B in pro forma annual revenues.
  • Tech Data is wholly owned by funds managed by affiliates of Apollo Global (NYSE:APO) and their co-investors.
  • Under the merger, Apollo funds will receive 44M shares of SYNNEX common stock plus the refinancing of existing Tech Data debt net debt and redeemable preferred shares.
  • After the deal closes, SYNNEX holders will own 55% of the combined entity and Apollo funds will hold the remainder.
  • The 11-member board will have six members appointed by SYNNEX.
  • Non-GAAP diluted EPS accretion of more than 25% is expected in year one after the close with further accretion expected in year two.
  • Net optimization and synergy benefits of $100M expected in year one with a minimum of $200M by the end of year two.
  • SNX shares are up 10.7% pre-market to $114.23.
  • Press release.

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