#SYNNEX MERGER TECH DATA DRIVER#
I found Wedgewood Partners’ recent letter detailing their CDW Corporation ( CDW) thesis to be a pretty good case for the industry as well – above GDP growth, and then the broad secular driver of work from everywhere forcing companies to invest in top-line equipment in more places, which puts more pressure on distribution everywhere, making scale more important. The industry is attractive due to broader exposure to investment in technology with less of the idiosyncratic risk of becoming obsolescent. Synnex is a tech distributor, like I said. I refer to the merger filing from when Apollo bought it out as the 2020 merger filing, and the Synnex/Tech Data merger as the 2021 filing). ( Note: Share prices are as of Wednesday, July 14th close. The research is mostly based on the merger filings and the company financials.
I have not yet decided whether it’s worth taking a position, so I thought to share some of my thoughts here. It creates a company that should have strong market position and a reasonable valuation. Synnex is merging with Tech Data, a previously publicly-traded competitor that was bought out by Apollo last year, only to re-emerge from the private equity chop shop in this deal some nine months after close. The company is a solid player in a quiet, but competitive space, and we might expect it to focus on its own business as a more concentrated company.Īnd perhaps that’s what’s happening, though not in a quiet sense. It spun off its call-center business, Concentrix ( CNXC), a spin-off that has proven to be a huge winner so far (I don’t have SNX’s pre-spin price, but it looks like the combined shareholder return has been north of 80% since the spin last December). The tech distributor has, like so many stocks, had a strong 18 months, up ~90%. Synnex ( NYSE: SNX) is in a curious situation. Tiger Parent and Tiger Holdings are controlled by investment funds managed by affiliates of Apollo.JHVEPhoto/iStock Editorial via Getty Images Tiger Holdings is the sole member and holder of all issued and outstanding shares of common stock of Tiger. Tiger Parent is currently the holding company of Tech Data. Tiger Parent is a corporation formed in accordance with the laws of the State of Delaware, U.S.A.
(collectively referred to as Apollo) invest in companies and debt issued by companies involved in various businesses throughout the world. As described in the Notice, investment funds managed by affiliates of Apollo Management, L.P. is a limited partnership formed in accordance with the laws of the State of Delaware, U.S.A.
SYNNEX provides technology products and solutions for information technology (IT) systems to resellers and retail customers.Īpollo Management L.P. It is headquartered in Fremont, California and listed on the New York Stock Exchange.
SYNNEX, founded in 1980, is a corporation formed in accordance with the laws of the State of Delaware, U.S.A. Upon steps (i) and (ii) of the transaction coming into effect, and in consideration of the shares of common stock of Tiger Parent held by Tiger Holdings, SYNNEX will issue approximately 45% shares of its common stock (carrying proportionate voting rights) to Tiger Holdings. Merger of Tiger Parent with and into Sub II, with Sub II being the surviving entity and remaining as a direct wholly owned subsidiary of SYNNEX and
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