- 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.